Indian billets exports market quiet amidst bid-offer disparities

Indian billets exports market turned subdued this week with recent tenders fetching lower bids than market expectations.

An Indian mill had floated two ocean sale export tenders due on 23 Nov’21 for end-December shipments. The tender for 20,000 t of steel blooms (200x200mm, 3SP/4SP grade) did not elicit any response. while the other one, for 10,000 of steel blooms (150x150mm, SAE 1008 grade) was heard to have fetched bids at around $585/t FOB. However, it seems less likely that the mill will conclude the tender, given the bid-offer disparities.

Towards the end of last week, an Indian mill had concluded an export tender for 20,000 t of steel billets (125mm, 4SP), sources informed SteelMint. The bid fetched was at around $600/t FOB.  As per sources, the bid put up was for the non-Chinese market, most probably for Egypt or Turkey.

Indian mills seem to be trying to explore the new markets as lower ocean freights and ease in vessel availability are stimulating mills for export allocations.

Bids for China’s billet imports down despite hike in rebar futures: Bids for imported billets in China were subdued on volatile rebar futures. SteelMint’s assessed prices for China’s steel billets imports dropped to $575-590/t CFR on 23 Nov’21, lower by $25 w-o-w. Bids from China and South East Asia have almost dried up, at present.

According to data maintained with SteelMint, China’s SHFE rebar futures contract for Jan’22 delivery settled at RMB 4,502/t ($705/t) on 24 Nov’21 , witnessing a sharp rise of RMB 286/t ($45/t), w-o-w.

Chinese domestic billets prices up: Following the increase in futures, steel billets prices in China’s Tangshan rose by RMB 120/t ($19/t) w-o-w to RMB 4,300/t ($673/t) on 24 Nov’21, (including 13% VAT).

India’s billet prices trade lower: SteelMint’s daily steel billet index (IF Grade) was assessed at INR 40,900/t exw-Raipur on 23 Nov’21, lower by INR 1,100/t w-o-w.

Outlook:

Gujarat-based steel mills have concluded export tenders of around 20,000-30,000 t of induction furnace (IF) steel billets (100x100mm and 130x130mm, 3SP grade), reliable sources informed SteelMint. The destination is yet unknown. The deals were heard to have been concluded at around $595-$600/t on FOB levels for Dec’21 shipments.

Indian primary steelmakers may not be interested to sell actively at lower prices which may continue to weigh on export  bookings. At the same time, Indian mills are looking to grab opportunities in other potential markets like Egypt etc.