The Indian billet export market has seen a slight improvement this week amid the revival of demand from China and higher number of bids at above $600/mt FOB. Nevertheless, prices have failed to increase much, remaining under pressures from weak demand and soft rebar prices across Asian markets, SteelOrbis learned from trade and industry circles on Wednesday, August 11.
Indian exporters have been able to find takers at prices of $610-620/mt FOB, versus $610-615/mt FOB last week, but the overall mood in the market has been cautious as many buyers outside China are still bidding at lower levels.
“There was a brief rebound in billet prices in China early in the week. Chinese buyers are present in the market, but extremely sensitive to prices. The expected increase in demand for imported semis in the wake of falling crude steel output in China is being delayed by a slowdown in the construction business. So, it’s wait-and-watch for Indian exporters. Strong domestic prices of billet in the local market are a positive to check inventory build-ups,” an official from the government steel producer Rashtirya Ispat Nigam Limited (RINL) said.
On August 10, RINL was heard to have concluded a spot tender export sales of 30,000 mt of 150 mm prime steel billet with an Asian buyer, reportedly submitting a highest bid of around $610/mt FOB or slightly below ex-Gangavaram port in the south. According to the sources, realizations from this latest spot sale was around $20/mt lower than a similar spot export tender for blooms concluded last month, but in any case the price was much better than last week when RINL was forced to cancel the tender having bids at below $600/mt FOB. According to the sources, the company opened another tender also for 30,000 mt of billet today.
The last offer from a trader-booked ex-India cargo earlier was at $700-705/mt CFR early this week with freight estimated at $80/mt. “But there's another point to consider, that's that Indian vessels coming to China may be subject to an additional 21-days of quarantine,” a trader said.
The sources said that an Odisha-based steel mill is heard to have concluded a deal for a modest tonnage of 20,000 mt at the lower level - $600/mt FOB or even below, but most sources believe that either this was for lower-grade billet or the final destination was not China, SteelObris learned.
Meanwhile in the local Indian market, billet prices have continued to rise although at a slower pace than seen earlier in the month. Local billet prices gained INR 400/mt ($5/mt) to INR 42,400-42,600/mt ($571-574/mt) ex-works, sources said.
$1 = INR 74.24