Indian state-run steel producer RINL has managed to close a billet tender for 30,000 mt of 3SP/4SP 150 mm billet, opened late last week. The previous tender by a mill and auctions by another Indian mill had been canceled as prices were not high enough for sellers, who have been targeting above $600/mt FOB.
But as the market conditions have worsened, RINL has decided to push a volume into the export market and accepted the highest bid at $590/mt FOB from an Asian trading company. This deal is in line with the SteelOrbis’ last week reference prices at $585-595/mt FOB.
Market sources believe that Indian billet export prices may decline further as demand in Asia will remain limited in the coming weeks since China is staying away from imports. Even though billet prices in Tangshan have added RMB 20/mt ($3/mt) over the weekend to RMB 4,320/mt ($678/mt) ex-works, this translates to only $600/mt, excluding 13 percent VAT.
The latest deals for ex-CIS 3SP billet in Southeast Asia were reported at $640/mt CFR to the Philippines.
The situation in the Gulf region’s import billet market is also far from positive.
