Leading Market News : Indian mills count on export market as global prices continue to rise
Market reports indicate significant interest from Indian mills (both large and small) offering steel cargoes in the export market in view of the rising global prices. Notably, the Chinese steel futures recorded another high on Monday, which went up by about 5% ($50). The contracts hit daily caps following which trades had to be suspended. Chinese buying interest for billet (BF) is currently assessed at $750/t CFR, which is equivalent to $700/t FOB India. At this price, large mills would be making a Net Sales Realization (NSR) of around INR 50,000/t on an Ex-mill basis. This is much higher than what they would realize in the domestic market.
It is learnt that most of the Indian mills are fairly booked for June shipments, with lower inventories reported in the month of April. The mills do not seem to be under pressure to reduce prices in the short term, despite two third of the country being under lockdown.
In other News / Trades
- OMC iron ore fines auction of 1.37 mn t fetched bids higher by over 50%.
- KIOCL’s pellet tender got booked at $234/t FoB India, the last tender getting closed at $205/t FOB in April.
- Central Indian pellet makers raised domestic offers by INR 1,500.
- SteelMint Billet index closed at INR 42,800/t (Ex-Raipur).
- SAIL’s commercial rail auction of 10,000 t fetched bids higher by INR 2,000/t ($27).
- Electrosteel’s 20,000 t (150mm) and SAIL’s 125mm billet export tenders are due today 11 May.
- Indian mills raised HRC export offers by $50/t w-o-w, citing rising steel futures.
- Indian mills raised CRC export offers to Europe by $20-25.
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