Posted on 16 Sep 2020
An Indian mill held another export tender for billet last Friday. But the awarded cargo may not be heading to China, unlike previous Indian billet export consignments, Kallanish notes.
A trader booked the 30,000-tonne 150mm 3sp/4sp billet cargo at $430/tonne fob India in the tender. This is on letter of credit terms, traders say. On 4 February, two cargoes tendered by the same Indian mill were awarded at $425/t fob, but they were on full advance payment basis. The tender price would be $5/t higher if payment was by LC, traders estimate. Freight for a 30,000t cargo from India to China is around $20/t.
The cargo's readiness is for 31 October, meaning its shipment could be in early November, another trader says. Several regional trading sources hear the latest tendered cargo would be sold to Sri Lanka.
Previous Indian billet cargoes were earmarked for the Chinese market. But the market in China has quietened because of weakness in Chinese steel futures and the large inflow of billet imports. There are “…no bids at all” for billet imports, a Chinese trader said on Tuesday.
Source:Kallanish
