India’s billet exports under pressure from lower bids and ex-Vietnam sales

Wednesday, 01 July 2020 16:22:59 (GMT+3)   |   Kolkata
       

India’s billet export activity has fallen slightly during the past week with a marginal softening of prices in the face of competition from outward shipments of ex-Vietnam billets, but the outlook has remained positive reflected in new export tenders from local integrated steel mills, SteelOrbis has been informed on Wednesday, July 1.

According to traders, the market estimates the total billet export trades concluded during the past week to be in the range of 75,000-80,000 mt, lower than the previous week, while prices have also softened with deals largely pegged at the lower end of the range of $375-380/mt FOB, down by $5/mt over the past week.

Market sources said that a southern India-based steel mill has floated an export tender for 15,000 mt to close for bidding within the next fortnight and that the offered volume is slightly less than the mill’s usual export tenders.

This steel mill has contracted for September delivery of 20,000 mt of large dimension billets (125 mm x 125 mm) with a China-based trading firm at $282/mt FOB, while freight has increased recently to $20/mt minimum. At the moment, most bids from China are coming at $390-395/mt CFR, which translates to $370-375/mt FOB from India.

Another state-run steel mill has floated an export tender for 25,000 mt of billet also with bids closing in two weeks’ time, the sources added.

An Odisha-based steel mill has concluded an export contract for 35,000 mt with a Singapore-based trading firm with a supply agreement with an Asian user at $375-378/mt FOB Paradip port on the east coast, sources said.

“The slight subdued trading conditions for ex-India billets particularly in the Chinese market was largely owing to larger volume shipments from Vietnam. But I feel that this will be temporary and market trading conditions will bounce back,” an official at an Indian exporter said.

 


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