Indian BF-grade billets export market has remained inactive on low bids and weak demand. SteelMint’s bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at around $750/tonne (t) FOB on 27 April 2022, down by around $5/t w-o-w.
Factors weighing on Indian billet exports-
- SE Asia imported billets offers down : SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines stood at around $775/t, CFR Manila, a sharp drop of $25/t on weak demand. No trade was heard so far this week. However, a few offers were heard, down at around $750/t CFR, as per sources.
- Chinese SHFE rebar futures plunge: According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery closed at RMB 4,850/t ($733/t) on 28 April 2022, a sharp w-o-w fall of RMB 208/t ($31/t). Also, on a d-o-d basis, a decrease of RMB 14/t ($2/t) was noticed. On the other hand, Russian billets were also heard to be sold to China at around $670/t CFR for June shipment in line with competitive domestic prices in China.
Meanwhile, steel billets prices in China’s Tangshan remained stable at RMB 4,740/t ($717/t) on 28 April 2022, inclusive of 13% VAT. Prices fell sharply by RMB 90/t ($14/t) w-o-w.
Iranian mills lower tariff rates for billets, and China procuring material from Russia may impact Chinese demand from India. However, Indian mills may not lower their offers as they are getting decent realisations in the domestic finished steel market.
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