Indian billet export market subdued on better domestic realizations

The Indian billet export market remained subdued amidst bid-offer disparities in the global market and better realizations in the domestic market. As per sources, Indian mills were seen offering blast furnace (BF) route billets (150mm) at around $600/t FOB but no deals were concluded.

Factors influencing subdued billets exports market

• SE Asian imported billets offer range-bound: SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines stood at around $538/t, CFR Manila, down around $2/t w-o-w due to low demand.
• Billet export prices from Russia competitive: CIS billet price indications were heard at around $520/t FOB this week, up $5/t w-o-w.
• Chinese domestic billet prices stable w-o-w despite fall in futures: Chinese Shanghai Futures Exchange (SHFE) rebar futures witnessed a significant fall this week. According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery closed at RMB 3,993/t ($589/t) on 17 August, a fall of RMB 73/t ($11/t) w-o-w. Moreover, the same witnessed a sharp d-o-d decline of RMB 160/t ($24/t).
  Meanwhile, steel billet prices in China’s Tangshan remained stable w-o-w at RMB 3,730/t ($550/t) on 17 August 2022, inclusive of 13% VAT. However, prices fell by RMB 60/t ($9/t), d-o-d.

On the other hand, SteelMint’s weekly price assessment of rebar (12-32mm, BF-route, IS 1786, Fe500D) stood at around INR 56,500-57,500/t ($710-722/t), down marginally by INR 250/t ($3/t) w-o-w. Prices mentioned are on exy-Mumbai basis, exclusive of GST at 18%.