Posted on 21 Oct 2020
An Indian mill has awarded a billet export tender after several attempts, Kallanish notes. The mill has not been awarding tenders for this billet cargo because the bids it received did not meet its target price, Indian trading sources say.
The cargo was first placed for tender on 1 October. Subsequent tenders were not awarded because the mill was believed to have had a reserve price of $418/tonne fob India. The cargo, for 30,000 tonnes of 150mm 3sp/4sp grade billet on 100% advance payment terms, attracted a bid of $420/t fob in Monday's spot tender. The consignment is ready to be shipped by 30 November.
“It [was] finally sold,” a trader says, adding that the cargo is destined for Sri Lanka.
Meanwhile, Vietnamese blast furnace mill Formosa Ha Tin announced last week its December-shipment prices for billet at $440/t fob. Another Vietnamese mill sold blast furnace billet for December shipment at $435/t fob to China at the end of the 5-October week. Freight to China is around $10/t.
The Chinese domestic billet market has been stable since the market reopened after the long October holiday. Domestic prices are prevailing at CNY 3,400/t ($509/t) in Tangshan as of Tuesday, trading within a narrow range of CNY 3,380-4,420/t since 9 October.
Formosa also announced its wire rod prices for December shipment last week. Its 6.5mm diameter SAE 1008 wire rod was tagged at $540/t fob.
Source:Kallanish
