Indian ocean billets export subdued on lower bids, higher domestic prices

The Indian blast furnace (BF)-route billets exports market has remained subdued over the last few weeks on lower bids. No billet export tender has been opened by any steelmakers this week so far.

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 5 April, 2022, stable w-o-w.

However, around 6,000 t of induction furnace (IF-grade, 3sp) billet export deals were reported from Gujarat-based mills in western India, concluded towards the end of last week at around $800/t FOB Munda Port, for this week’s shipment. Also, another 10,000-t billets deal was heard concluded in the same week at around $802-805/t FOB Kandla, as per sources. Both the deals were concluded for an African country.

Market highlights 

• Chinese SHFE rebar futures rise: According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery closed at RMB 5,121/t ($804/t) on 6 April, 2022, a w-o-w rise of RMB 87/t ($14/t). However, the same witnessed a decrease of RMB 39/t ($6/t) against the closing on 1 April, 2022.

Meanwhile, steel billets prices in China’s Tangshan rose by RMB 20/t ($3/t) to stand at RMB 4,880 ($767/t) on 6 April, 2022, inclusive of 13% VAT and up w-o-w by RMB 50/t ($8/t).

• SE Asia imported billets offers down: SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines currently stands at around $805/t, CFR Manila, down by around $10/t, w-o-w. Owing to Chinese national holidays this week, trade for South East Asia slowed down.  However, as per sources, Iranian billets were diverted to South East Asia for better realizations. 
• Lower bids from Egypt: The Egyptian market is coming down rapidly and buyers are not ready to pay more than $810-815/t CFR, sources informed SteelMint.

Outlook: High domestic realizations in finished steel and production curtailment issues may limit export allocations of billets in the short term from India.

Jindal Steel and Power Ltd (JSPL) hiked rebar (12-32mm, IS1786) prices by INR 1,000/t ($13/t) with effect from 1 April, 2022, sources informed SteelMint. Post-revision, the prices stands at INR 76,000-76,500/t ($1,007-1,014/t) delivered-Delhi basis, excluding GST at 18%.