Indian billets export market less active on bid-offer disparities

The Indian billets exports market witnessed less trade activities in the last one week amid absence of firm bids from key importing nations, volatile freight rates and uncertainty in the global market.

SteelMint’s bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at around $750-770/tonne (t) FOB on 15 Mar’22, up marginally by $5/t, w-o-w.

“Indian mills were heard targeting $760-770/t FOB levels for 3 SP, 150mm billets, but we haven’t heard any deals recently,” shared a market source.

Active tenders: Vedanta-owned and eastern India-based Electrosteel Steels Ltd (ESL) has floated an export tender for 20,000 t-30,000 t of billets (150mm, 3SP/4SP) with the due date being 16 Mar’22, according to sources. The tender has been floated against 100% advance payment terms and the shipment is likely to be scheduled for April.

State-owned steelmaker Vizag Steel had floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade) with the due date being 15 Mar’22 and end-April shipment.

As per the sources, few more tenders may come from the steelmakers in the next few days, considering the domestic demand.

Chinese SHFE rebar futures exhibit volatility: According to data maintained with SteelMint, China’s SHFE rebar futures contract for May’22 delivery closed at RMB 4,904/t ($772/t) on 16 Mar’22, a w-o-w marginal drop of RMB 3/t ($0.47/t). However, the same witnessed a sharp rise of RMB 151/t ($24/t), d-o-d after today’s State Council meeting to maintain a reasonable economic growth.

Meanwhile, steel billets prices in China’s Tangshan rose d-o-d by RMB 40/t ($6/t) to stand at RMB 4,680 ($737) on 16 Mar’22, inclusive of 13% VAT. However, the same fell by RMB 80/t ($12/t), w-o-w.

SE Asia imported billets offers rise: SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $790-800/t, CFR Manila, up by around $15/t, w-o-w. However, trade has been inactive this week.

Outlook: Indian steel mills are keeping offers high as the domestic market is up sharply on raw material price hike. However, global markets, especially China, are nowhere in the market for billet buying. All these factors may keep billet exports low from India.