Indian billet export prices have continued to consolidate at higher levels, supported by the rebound in the Chinese rebar market, and buyers have been accepting an increase in prices, SteelOrbis has been informed on Wednesday, June 3.
Ex-India billet export prices have moved up to $375-385/mt FOB and one contract was signed at slightly above $385/mt FOB recently, while last week bookings were mainly in the range of $370-380/mt FOB. Strong Chinese buying pushed prices up, while some demand was seen in Southeast Asia and the Gulf markets. According to sources, India’s aggressive marketing of billets at higher prices have found buyers’ acceptance in view of the overall increase in bids and the increase in ex-CIS prices over the past week.
Steel Authority of India Limited (SAIL), which has floated an export tender for 30,000 mt during the past week, received the highest bid from China in the range of $378-382/mt FOB, which corresponds to $393-395/mt CFR. The company has already opened another tender for a slightly lower billet volume for export.
An eastern India-based steel mill has contracted for an August shipment of 45,000 mt of billet with a Chinese trading firm at $380/mt FOB, and the tonnage is significantly higher than a contract concluded for 25,000 mt booked by the same steel mill in the previous week.
The sources said that a large integrated producer with steel mills located in Odisha has concluded a booking for 35,000 mt with a Singapore-based trader at $379-382/mt FOB for August.
Moreover, the latest booking of ex-India billet has been confirmed at $400/mt CFR China, which translates to about $387-388/mt FOB.
It has been pointed out that, following the resumption of business after the recent holidays in the Gulf region, inquiries from buyers have also increased during the past week, borne out by a western India-based steel mill contracting for an estimated volume of 30,000 mt with a Dubai-based trader for end-of-August shipment at an estimated price of $382/mt FOB, the sources added.
“Higher ex-India billet prices are being sustained largely because of the increase in the cost of iron ore and rebar prices which have bounced back in the Chinese market,” a manager at an Indian mill said.
“Indian billet is very competitive as local integrated steel mills’ input costs of raw materials like iron ore and coking coal are comparatively lower and producers are able to improve margin realizations significantly from semis shipments,” he added.