Indian billet exports touched an all-time high to over 2,00,000 MT in the May’16, according to data maintained by SteelMint.
Billet exports in May was recorded at 2,08,000 against in April at 27,500 MT , March at 73,000 MT and Feb at 1,00,000 MT. Total exports from India in FY16 were recorded at 9,74,000 MT and 12,24,000 MT in FY15.
Bangladesh contributed 63% of total exports from India followed by Italy (13%), Srilanka (11%) and Nepal (5%) in May’16.
Why it Happened ?
Exports have gone up sharply on account of strong buying from Bangladesh based re-rollers, who were anticipating duty hike in the budget. It may be noted that Bangladesh government has imposed a duty of 20% on all billet imports from all origin in its recent budget announced on 2nd June’16.
Exports have also gone up on sudden price hike by Chinese suppliers in the month of April and May. Big companies like JSW and JSPL also exported few cargoes during this time at an average price of USD 390-400/MT FOB India.
What may Happen ?
Indian billet exports may come down in the month of June after hike in customs duty in Bangladesh. East based furnaces, which contributed around 35% of total exports in May’16, will get impacted. Some manufacturers like Shyam SEL and Rashmi have already cut down their billet prices in domestic market.
Indian Billet/Bloom Export in MT
| Month | Bangladesh | Nepal | Sri-lanka | Italy | Others | Total |
| Oct’15 | 19,995 | – | – | – | 21 | 20,016 |
| Nov’15 | 35,008 | – | – | 15,243 | 21 | 50,272 |
| Dec’15 | 9,227 | – | – | 10,299 | 75 | 19,601 |
| Jan’16 | 39,443 | – | – | 9,644 | 46 | 49,133 |
| Feb’16 | 89,503 | 1,375 | – | 10,299 | 45 | 1,01,222 |
| Mar’16 | 55,579 | 761 | – | 16,434 | – | 72,773 |
| Apr’16 | 20,888 | 6,578 | – | – | – | 27,466 |
| May’16 | 1,31,127 | 10,168 | 23,007 | 26,485 | 17,213 | 2,08,000 |
| Total | 4,00,770 | 18,881 | 23,007 | 88,403 | 17,422 | 5,48,483 |
Provisional Data
Source: SteelMint Research, Custom Data
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