Posted on 22 Oct 2021
The continuous decline in Chinese steel futures has turned the global billet market silent, keeping traders at bay. According to data maintained with SteelMint, China’s SHFE rebar futures contract for Jan’22 delivery closed today, 21 Oct’21, at RMB 4,976/tonne (t) ($778/t), witnessing a sharp decline of RMB 328/t ($51/t), d-o-d.
Market sentiments weakened after China’s NDRC said that it would bring coal prices back to a reasonable range and crack down on the irregularities in the market.
Tracking the drop in futures, steel billet prices in China’s key steel producing hub, Tangshan, fell by RMB 50/t ($8/t) on 21 Oct’21. Domestic billet prices stood at RMB 5,170/t ($808/t) including 13% VAT.
Indian billet export market sees limited trade: A state-owned Indian mill is reported to have concluded an unusual sized export tender of 15,000-20,000 t of steel blooms (240*350 mm, 4 SP) for Indonesia. According to market sources, the deal was concluded at around $670/t, FOB India.
However, another state-owned steel maker floated an export tender for the sale of 30,000 t of steel blooms (150x150mm, 3SP/4SP grade). According to market sources, the tender was heard to have got cancelled.
“Indian primary mills are expecting around $640-650/t FOB for 4SP but bids received in recent tenders have been much lower than their expectations. Considering higher realizations in the domestic market, mills may not be ready to export at a lower rate,” said a trader.
Active tenders:
SAIL has floated an export tender for around 18,900 t of prime mild steel non-alloy blooms from its IISCO Steel Plant in West Bengal. The cargo is scheduled for end-Dec’21 shipment. Buyers have to quote bids on SAIL’s website latest by 21 Oct’21. The offer must be valid up to 25 Oct’21.
Indian domestic rebar offers at 10-year high
Indian rebar prices, last week, touched over 10-year highs and this uptrend has sustained since then. Primary (blast furnace-route) mills’ prices are currently at around INR 58,500/tonne (t) ($781/t) exy-Mumbai while , secondary mills’ rates are at INR 53,700/tonne ($717/t). Thus, higher domestic prices may allow mills to stay less interested in exports.
Source:SteelMint
