The majority of Indian primary mills continued staying away from the global billet market for this week as well, on falling USD against INR supported by improving realizations in the domestic market. Yesterday, INR appreciated to 72.7 against $, versus over 75 in mid-Aug’20. Owing to this, Indian mills have raised finished steel prices sharply for Sept’20. The price hike in longs is reported roughly around INR 1,000/t ($14). The raw material price hike has also contributed to rising steel prices.
Deals & offers –
- A state-owned primary mill has booked a billet rake (2,750/t) for export to Nepal at $425/t, ex-plant, SteelMint learned from an official.
- The secondary mills of the country have booked decent volumes for the SE Asian destinations. For instance, a western India based mill booked 10,000 t billets at a price level of $440-445/t, CFR, sources reported to SteelMint.
- RINL has floated an export tender for 30,000 t (150*150m, 3SP/4SP) blooms against 100% advance payment terms. The tender due date is 02 Sep’20, and shipment is likely to be scheduled by 15 Oct’20. In previously concluded tender, the managed to achieve a price level of $415/t, on a FoB India basis, against 100% advance payment terms.
Chinese bids for Indian billets saw an increase- On rising domestic billet prices and rebounding rebar futures, the Chinese buyers have increased their buying offers for the Indian billets. This week, the bids have seen in the range of $432-437/t, CFR China, up by $5-7/t, against last week. The Chinese domestic billet prices have registered a hike of RMB 50-60 w-o-w to reach RMB 3460/t ($503/t), ex-Tangshan, including 13% VAT
Yesterday, the SteelMint assessment for IF grade billets (Exw Raipur) was at INR 29,600/t ($405/t), up by INR 500($7) from last week’s prices.
SteelMint assessment for Indian billet export offers (150*150mm) remained unchanged and is at $420/t, FoB India.
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