Indian mills target to achieve higher billet export prices on bullish global sentiments

Indian billet export market continues remaining silent for this week as well. The majority of mills continue to pose limited interest in the exports amid better domestic realizations. However, a soaring offer from a primary private mill heard floating at $500/t, CFR for this week as well for a Chinese or a SE Asian destination. Otherwise as well Indian mills are targeting higher prices considering an upward price spike in the global market.

During a conversation with SteeMint, a trade source mentioned- $500/t, CFR is not the tradable price. I believe $475-480/t CFR is a decent price level in the current situation.

The rising global scrap prices have kept the billet prices supported across the globe. The Chinese rebar futures also backed the event. The imported scrap prices in Turkey have increased by $3-4/t in recent deals reported yesterday. SteelMint’s assessment for HMS 80:20 imported prices in Turkey is currently at $335/t, CFR.

Vizag Steel floats tender for 30,000t bloom export: Vizag Steel -a state-owned steel maker under the Ministry of Steel has floated an export tender for 30,000 t blooms (150x150mm. 4SP). The tender floated is on a 100% advance payment basis. The shipment is likely to be scheduled for the end-Dec’20. The tender due date is 27 Nov’20.

This week, we did not witness any substantial export offerings for 150*150mm BF route billets. However, the price indications were listened at $445/t, FoB India, up by $ 5-10/t w-o-w.

Indian domestic billet prices posed a downward trend: This week, the Indian domestic billet market witnessed a little stagnant resulting in a price drop. The following are the reasons-

• The domestic scrap has posed surplus generation, which disrupted the demand-supply spread and pulled down the prices in almost every market of India.
• Amid sluggish finished steel demand, construction activities have slowed down, especially in Northern and Western India, due to an outbreak of the second COVID wave.

Yesterday, SteelMint’s billet index for IF route billets, Exw Raipur settled at INR 34,800/t ($470/t), down by INR 750/t ($10/t) against last week.