Indian billet exporters turn inactive as domestic realizations are better than exports. Billet prices in domestic market have increased by around INR 1,500-2,000/MT (USD 23-31) in last few days owing to rising Iron ore & Scrap prices and improved demand.
Current prices for 100*100/125*125 mm billet are hovering at INR 35,500/MT (USD 555) on Ex-Mumbai basis. Where global prices are assessed at USD 515-520/MT FOB levels.
SteelMint learned that, large steel mills do not have allocation for exports as most of them are focusing on domestic market.
“No allocation of billet for exports from JSW (which is the largest exporter of billets from India). Vizag Steel has sold decent quantities last month for which deliveries are due in January. SAIL has recently cancelled a tender due to higher price expectation.
Induction furnace billets are also not being offered as domestic prices are much higher than exports offers.” said a trader based in Mumbai
Recently a state owned mill has cancelled 27,000 MT billet export tender. Company received highest bid at around USD 515/MT FOB India, which was not in line with the expectation.
Indian billet exports increase in 2017
Indian billet exports increased by about 42-43% in calender year 2017, according to data maintained by SteelMint stats.
The exports have been increasing due to non availability of Chinese billets and rising scrap prices in global market.
Indian Billets exports (under HS code 7207) were recorded at around 2.50 MnT during Jan-Dec 2017, which was 1.75 MnT during 2016.
The largest importer of Indian billets was Nepal (50-60%) and rest major importers were Indonesia, Sri Lanka & Philippines.
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