Falling global billet & scrap prices have continued to weigh down market sentiments in Indian billet export market too.
Two of the major Indian mills had issued tender for export of billet & bloom. SAIL had floated export tender for prime mild steel non alloy concast billets. The tender quantity was reported to be 10,800 MT. The tender put up is for size 125*125mm offered from Durgapur Steel plant. The material had following specifications – C%: 0.27-0.33, Mn%: 0.7-1.0, S%: 0.05 Max, P%: 0.05 Max, Si%: 0.15-0.35
Vizag Steel invited e-tender for the export of 30,000 MT Bloom (150*150mm) 4 SP grade which was due on 05 Feb’20. The company has extended the due date till 07th Feb’20.
Both the tenders received dull response amid depressed market sentiments.
The prime reason for dull response in both the tenders; SAIL and RINL is falling global prices and dull demand from China & SE Asia. The event; falling prices is strongly supported by corona virus outbreak, as majority of the Indian billet buyers are located in SE Asia and Far East and these regions are majorly affected by the virus. The construction activities in these regions are slowed down. Many construction sites in China have been asked to resume operations only after 09 Feb’20 with some even not until early March.
Turkey’s imported scrap which has created the disparity between bids and offers. The buyers are in a wait and watch mode expecting further drop down in the global billet prices.
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