Indian billet export prices rise to seven-year high

Export prices for Indian billets rose again at the end of last week as a result of a tender organized by an Indian state-owned plant for the placement of 30,000 tonnes of billets (150 * 150mm, grade 3SP /4SP). According to SteelMint sources, the company managed to reach the price level of $ 575-580 per tonne, FoB India, up $ 38-40 compared to the previous tender completed in mid-December 2020.

At the same time, export prices for Indian billets reached a seven-year high. Strong domestic demand and high commodity prices (both export and domestic) strongly support this growth.
Meanwhile, Indian mills announced their second domestic price hike in January on January 21, citing a mismatch between supply and demand.

Indian mills are showing good margins in the domestic market despite rising refining costs.

SteelMint's fortnightly estimate for Indian billets (150 * 150mm, route BF, east coast FoB) is $ 575-580 per ton, which is $ 10-12 more than last week.

Outlook: Trading sources indicated limited buying interest in billet from CIS countries, as offers reached USD 620 /t at FoB level. Due to the discrepancy between bids and offers, the export of billets from the CIS countries has slowed down. In addition, the mood on the Turkish import scrap market has also softened somewhat. These factors can stop the rise in prices on the global billet market.