Indian billet exports prices have continued to perform strongly with a few integrated steel mills attempting to marginally increase prices in deals with buyers in Southeast Asia and China, SteelOrbis learned on Wednesday, June 17.
According to traders, the increase in offers attempted by integrated steel mills has been conservative and most suppliers have been keen to avoid any fall in volumes in reaction to price increases.
Ex-India billet prices are marginally up to $385-390/mt FOB compared to deals concluded in the range of $380-387/mt FOB in the earlier week.
According to the sources, state-run Rashtriya Ispat Nigam Limited (RINL) late last week concluded an export deal for 30,000 mt with a Chinese buyer at $388/mt FOB for end-of-August delivery. While this week the company has held another tender for the same volume. the results of the auction have not been announced yet due to some technical problems.
“In June, we expect our billet exports to grow at least 67 percent over May and we see the growth being sustained over the next few quarters. The introduction of higher dimension billets (125 mm x 125 mm), production of which was recently started at our mill will enable us to make expanded offers to our customers. We are receiving good inquiries for these large billets from the Middle East, which we should be able to sell during July,” an official at RINL told SteelOrbis.
Steel Authority of India Limited (SAIL) has floated a fresh export tender for 36,200 mt of billet and expects to close the offer within the next two weeks, market sources said.
SAIL’s Bhilai Steel Plant (BSP) has concluded two export contracts for 10,000 mt and 5,000 mt for August-September deliveries with Asian buyers through negotiated deals at the price range of $385-387/mt FOB Vizag port on the east coast.
An eastern India-based steel mill has concluded a contract with a China-based buyer for an estimated volume of 35,000 mt for early September delivery at the price range of $388-390/mt FOB, market sources said.