Indian ocean billets exports market subdued as markets await buyers’ return from holidays

Indian BF-grade billets exports market remained was almost at a standstill amid low and fluctuating bids against the backdrop of holidays and fall in global scrap prices. SteelMint’s bi-weekly price assessment for Indian billets exports (150*150mm, 3SP/4SP, BOF route) stood at around $750/tonne (t) FOB on 2 May 2022, stable w-o-w.

Owing to the Labour Day holidays most of the markets, especially the Chinese market, have been closed from the last three days and are expected to return tomorrow.

Active tender:

State-owned Vizag Steel has floated two ocean sale export tenders for 30,000 t of steel blooms (150x150mm, 3SP/4SP) and 40,000 t of basic grade pig iron. The due date for both the tenders on 5 May, 2022 and the delivery will be scheduled on 15 June.

Factors weighing on Indian billet exports-

• SE Asia imported billets offers down further : SteelMint’s assessment of imported billets (150*150mm, 3SP) into the Philippines stood at around $755/t, CFR Manila, a sharp drop of $20/t on sluggish demand. No trade was heard so far this week. Due to softening finished steel (HRC) bids in Vietnam and other South East Asian market.
• Chinese SHFE rebar futures fall: According to data maintained with SteelMint, China’s SHFE rebar futures contract for October 2022 delivery closed at RMB 4,910/t ($743/t) on 29 April 2022, a w-o-w fall of RMB 54/t ($8/t). However, on a d-o-d basis, a rise of RMB 60/t ($9/t) was noticed just before the ongoing holidays in the country till 4 May.

Meanwhile, steel billets prices in China’s Tangshan remained stable at RMB 4,740/t ($717/t) on 29 April 2022, inclusive of 13% VAT. Prices fell by RMB 50/t ($7/t) w-o-w due to volatility in rebar futures.

• Global scrap prices plunge: Turkish scrap import market witnessed limited deals being concluded at low offers as the Eid holidays approach. Notably, considering the absence of Turkish buyers in the last couple of weeks, imported scrap offers have dropped significantly by around $30/t in last one week’s time and currently stand at $550/t, CFR Turkey for US HMS (80:20).

On the other hand, Indian mills are announcing domestic finished steel prices for May which are likely to see a correction. With LC-related issues, Egypt has remained less active in billet imports, while Covid surge and holidays have kept Chinese demand subdued. Thus, with markets reopening after holidays, the global billet markets may gain some clarity.