Lower bids keep Indian billet export prices under pressure

The Indian billets export market has seen a calm start to the new year post the holidays. Limited bids in the market and bid-offer disparities have weighed down Indian billet export prices.

SteelMint’s bi-weekly price assessment for Indian billets export (150*150mm, 3SP/4SP, BOF route) stood at $580-590/tonne (t) FOB on 05 Jan’22, lower by $10-15/t w-o-w. Prices have fallen to over nine-month lows, as per data maintained with SteelMint.

Indian mills are not ready to reduce billet offers sharply considering the high input costs. Bids for billets export are at around $580-585/t FOB at present, one of the traders said while talking to SteelMint.

An Indian mill had floated a spot sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). The due date of the tender is 4 Jan’22 with the shipment scheduled for mid-Feb’22.

Billet import prices fall in SE Asia: As the market opened after the Christmas and New Year holidays, bids for imported billets in South East Asia dropped sharply by around $10-15/t w-o-w to around $615-620/t, CFR Manila.

Offer from an Indonesian mill was heard at around $615/t, CFR SE Asia.

Chinese bids for imported billets stable despite hike in rebar futures:  According to data maintained with SteelMint, China’s SHFE rebar futures contract for May’22 delivery closed at RMB 4,444/t ($699/t) on 5 Jan’22, witnessing a rise of RMB 49/t ($8/t), d-o-d. On a weekly basis, the same rose sharply by RMB 129/t ($20/t).

Following a recovery in the futures, steel billet prices in China’s Tangshan rose to RMB 4,280/t ($673/t) on 5 Jan’22, inclusive of 13% VAT, a marginal increase of RMB 10/t ($1/t) w-o-w and an increase of RMB 20/t ($3/t), d-o-d.

SteelMint assessed prices of China’s steel billets imports at $600/t CFR on 04 Jan’22, stable against last week.

Outlook

Indian primary mills have largely rolled over rebar prices for Jan’22 deliveries on supported demand in the domestic segment. However, a rise in domestic steel production is likely to keep mills active in billets exports but the market may remain impacted by the  other facts such as Chinese rebar futures trend and offers from other overseas suppliers. Indian steel mills may gain clarity after the markets resume fully after New Year holidays.