Indian Billet Exports Weaken Over Competitive Offers from CIS Nations

Indian Billet exports tumbled by 81,000 MT (37%) M-o-M in Oct’18, Although exports have fallen continuously since Aug’18.

As per custom data maintained by SteelMint, India exported about 139,169 MT Billet in Oct’18, decline by 37% as against 220,534 MT in Sep’18. Prior to this in Sep’18, the export declined by around 106,000 MT (32%) M-o-M as compared to 326,404 MT in Aug’18.

The Indian exports fall majorly for South East Asian (SEA) nations as they were getting competitive offers from CIS nations – Russia & Ukraine. Notably the data shows Indian exports to Philippines, Indonesia, Kenya & Malaysia declined by 99%, 78% & 50% on monthly basis in October. Inline Billet exports to Nepal fall slightly by 2% in Oct’18.

As per assessment, on an average the landed cost of CIS origin Billet to SE Asian nations was cheaper by around USD 30/MT than to source Indian Billets. The average export offers for Billet during Sep’18 was hovering at USD 470-480/MT FOB Ukraine, while India’s offer was at about USD 490-500/MT FoB, for blast furnace grade material & Oct’18 shipments.

Further, total export from India in CY18 (till Oct) was recorded at 2,027,561 MT, decline by 7.20% M-o-M as compared to 2,184,859 MT in the same month of CY17.

Nepal, the largest importer of Indian billet/bloom, contributes 47.63% of total export from India, followed by Philippines (9.27%), Indonesia (8.38%), Thailand (8.25%) and United States (5.20%) in Jan’18-Oct’18.

As per our last assessment, the export offers of 150*150 mm IS 2830 grade billet at USD 425-435/MT FOB India, 125*125 mm 3SP at USD 410-420/MT FOB Ukraine & 150*150 mm Q235 are at USD 440-450/MT FOB China.