Indian billet export price assessment increase by USD 15/MT on recent export tender conducted by India’s government owned mill.
Steel Authority of Indian Ltd (SAIL) had floated an export tender of 13,500 MT 125 mm square billet of grade 4SP/5SP from Haldia port on 16 Aug’17 , which expired on 18 Aug’17.
According to market participants company managed to fetch highest bid at around USD 505/MT FOB Haldia port (India east coast). However tender has not been awarded yet.
Market participants feel that this cargo may be go to Sri Lanka looking at its chemical composition. They feel, 4SP is not popular in South East Asian market.
SteelMint’s price assessment for 150 mm billet have increased to USD 500-505/MT FoB India against USD 490/MT FoB last week. There are no firm offers from private mills. But participants believe that it should not be less than USD 510/MT FoB India.
Rising billet prices is a result of sharp upturn in Chinese steel prices, which has triggered demand for Indian billets in South east Asia.
Prices for Chinese billet exports have gained about USD 90/MT , since April 2017.
Billet prices rise globally
Billet prices are rising sharply across the globe on absence of Chinese billet and rising graphite electrodes prices. Price assessment for Russian and Ukrainian billets is done at USD 505-510/MT FoB Black Sea, USD 495-500/MT FoB Iran.
However, buying interest seems little low this week as buyers are reluctant to pay higher prices.
” Some resistance is seen in the market. Prices have gone up too fast and buyers are waiting for markets to take direction. Chinese markets have shown some volatility this week. Some Chinese traders have short sell the cargoes on anticipation that prices may not sustain.” said a billet trader based in Singapore.
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