Indian billet export prices have remained at a high level during the past week, supported by buying in the Asian region. Indian mills have been interested in further pushing billet volumes overseas, but an additional price increase is unlikely, SteelOrbis was informed on Wednesday, May 27.
To leverage the strong export market for ex-India semis, several integrated steel mills like Steel Authority of India Limited (SAIL) have shortened the closing periods for bids from the usual 15 working days and have been closing tenders within seven working days, and are quick to float fresh volume offers, the traders said.
Market sources said that ex-India billet export prices have been at $370-380/mt FOB. As SteelOrbis reported earlier, most deals were closed at $365-370/mt FOB a week ago, while one contract was signed at above $375/mt FOB, which means that prices have not changed much compared to the highest deal level reported last week.
According to the sources, SAIL opened a billet export tender for 20,000 mt early last week and closed it quickly, receiving the highest bid from a Singapore-based trading firm in the range of $376-378/mt FOB. The integrated steel producer was quick to float another slightly larger export tender for 30,000 mt amid strong buying sentiments. The latest bid was higher compared to the previous billet export tender closed at $365-368/mt FOB.
One of the largest export bookings of the past week for 55,000 mt was concluded by an eastern India-based integrated steel company to be supplied from its Odisha steel mill to a China-based trading firm, with sources indicating prices ranging at $378-380/mt FOB. This price level translates to $390-392/mt CFR China. However, the total deal has been split into two tonnages to be shipped over the end of July and early August, the sources added.
Jindal Steel and Power Limited, according to market sources, has concluded an export contract for an estimated volume of around 25,000 mt for early August delivery at an estimated price of around $372-375/mt FOB.
“Ex-India shipments remained strong. Indian exporters were supported in pushing up prices as prices of ex-CIS billets were also moving up particularly to destinations like China and the Philippines. However, the next few weeks will remain crucial in sustaining the strong import buying,” a manager at JSPL said.
“A negative note is the recent softening of rebar and billet prices in the Chinese market and a fall in spot