Indian Billet Prices may Fall by INR 1,000/MT

Consistently falling  offers for billet from Chinese suppliers may pull down Indian domestic billet prices to an extent of INR 1,000/MT in days to come.

Global steel market has come under tremendous pressure on slowdown in Chinese demand. Chinese billet prices have significantly declined by upto USD 30-35/MT in last one month and experts expect further correction from these levels.

Turkey Prefers Chinese Billets over Scrap

Chinese billets have changed the dynamics of global scrap market. Turkey, which is the largest importer of ferrous scrap has shifted to Chinese billets,owing to lower cost. This has resulted in sharp fall in global scrap prices. Similarly Korean mills are preferring Chinese billets than imported scrap.

Scrap suppliers are eyeing emerging markets like India, Bangaldesh, Pakistan at a lower price. If situation continues, scrap prices may go down further.

Indian Billet Exports Non-Competitive

Export s of Billets from India is not viable at the moment. Indian manufacturers have to either cut down their export offers or sell at a lower prices in domestic market.Indian domestic and global billet prices are co-related. India is neither a major exporter nor importer of billet but certainly not immune to global slowdown.

Chinese billet offers are USD 320-325/MT CIF asian regions, where as Indian billet will not be less than USD 340-350/MT CIF asian regions.

Similarly, plate and slab import have become viable after price correction. Most of the Indian steel mills are preferring to import slab and roll into plates rather than melting and converting into billet or slabs or blooms.

Indian & Imported Billet Offers

Source: SteelMint Research