The billet export activity of Indian integrated steel mills has been subdued during the past week, but the stronger billet and rebar market in China is giving hope for price stabilization or even for some improvement. Though tensions between India and China have been creating difficulties recently, export sales are unlikely to be stopped.
“Indian steel mills have benefitted tremendously during the peak of the national lockdown by aggressively increasing exports of billets to China. This is unlikely to stop. The only thing that worsening Sino-Indian relations will do is force exporters not to officially talk about deals,” an official at a government-run steel mill said. “The public mood is against trade with China and steel companies do not want to go against such sentiments and will therefore try keeping details of their international business quiet,” he said.
Most integrated steel mills have kept their export offers unchanged during the past week in the range of $375-380/mt FOB, but some sellers are targeting above $380/mt FOB at the moment.
Steel Authority of India Limited (SAIL) has floated an export tender for 20,000 mt of billets. RINL is also holding a tender for 30,000 mt of 150 mm billet, which is expected to be closed this week. Sources said that the mill’s expectations are for over $380/mt FOB.
This week, an offer from one of the main Indian sellers have been heard at $407/mt CFR China, and though there has been a rumor about a deal closed at $405-407/mt CFR (which translates to $382-385/mt FOB), this has not been confirmed by the time of publication.
On July 8, the billet price in Tangshan has increased by another RMB 20/mt ($3/mt) to RMB 3,370/mt ($480/mt) ex-works, reflecting stronger sentiment in the Chinese market.