Indian mills improve billet export realizations from sales to China

Wednesday, 21 July 2021 09:44:57 (GMT+3)   |   Kolkata
       

Indian billet exporters were successful in slightly improving realizations from sales in China as higher prices found more acceptability among buyers expecting fall in liquid steel output from Chinese steel mills to trigger higher interest on imported semis, SteelOrbis learned from trade and industry circles.

Indian state run steel mills were most aggressive in pushing higher volumes of semis oversees reflected in sharp increase in number of spot export tenders floated during the week, as a strategy to offset weak demand of long products and low merchant sales of billets in the local market.

According to the sources and trade circles, average price of ex-India billet improved to levels of $620-640/mt FOB compared to $610-620/mt FOB a week ago.

A southern India based steel mills reported concluding a trade for 10,000 rolled 65x65 mm rolled billet receiving highest bid of around $520/mt FOB for September delivery with China based trading firm although final commercial terms was yet to be signed with the buyer.

The same steel mill also concluded a spot export tender for 90x90 mm rolled billet with China based buyer at highest bid reported in range of $630-645/mt FOB, also for September delivery.

Another government steel producer, reported a trade for estimated tonnage of 30,000 mt at $633/mt FOB through spot sale to a Singapore based trading firm for end September shipment, the sources said. Adding the freight costs, CFR price to China is $713/mt CFR, sources have said.

“We are seeing slight improvement in acceptable valuations from buyers in China. But the pace of recovery in billet export price is still slow. Blast furnace output cut in second half of fiscal in China is expected to trigger higher interest in semis,” an official in Steel Authority of India Limited (SAIL) said.

“However, Indian billet exporters have to adopt a cautious and conservative export pricing considering slowdown in long product demand in the local market. Pushing higher volumes in exports is more important,” he added.


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