Posted on 17 Dec 2020
Indian primary mills continue to pose limited interest in the global billet market on strong domestic demand. This week, we haven't heard any substantial export offerings from the mills. However, the price indications noted at were $520-530/t, FoB India.
Meanwhile, today an Indian state-owned steelmaker, Vizag Steel, has floated a spot sale export tender for 30,000 t (150*150mm, 4SP grade) blooms for Jan '20 shipments. The tender due date was 17:00 hrs of 16 Dec '20. In a previously floated tender, the company achieved a price level of $485-490/t, FoB India.
SteelMint's bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is at $520/t, up by $15-20 against last week.
Continuous rising global scrap prices pulling the global billet prices- Turkish imported scrap prices are continuously rising. Prices have rallied amid tight availability and logistical constraints. The suppliers have left buyers with no option, as they have to book scarp cargoes at high offers on increased demand from the end-users. SteelMint's assessment for USA origin HMS 1&2 (80:20) stands at $438/t CFR Turkey, up by $60/t against last week.
On the other hand, reasonable domestic prices in China have created a wide bid-offer spread for the Indian billets. For instance, the domestic billet prices in China are at RMB 3630/t ($559/t) ex-Tangshan, including 13% VAT. While Indian imported billets are costing at $624/t (including duty and taxes)
And hence, Chinese bids for Indian billets heard at $495-500/t, FoB levels. Also, Indian domestic prices are rallying with mills raising finished steel prices for the third time in Nov’20.
It seems mills would expect higher prices in their upcoming tenders.
Source:SteelMint
