Mono Steel India in Gujarat has resumed production after remaining shut for the past three weeks to comply with the COVID lockdown measures.
The company is eyeing to sell steel billets in export markets as domestic demand has come to a standstill. China is currently in the market for purchasing billets. Mono Steel is heard to have booked an export order for 30,000mt steel billets for April shipment at around $380-385/mt fob or $400/mt cfr China, likely to be shipped in the next 15 days.
Chinese steelmakers have turned active for billet trades as demand is expected to rise in their construction industry. Seaborne trades have become lucrative for the steelmakers in India since the Indian Rupee depreciated to Rs76.3 against US$1 on April 13 from Rs75.47 on March 29.
India was a major billet exporter to countries like Nepal, Sri Lanka, Thailand, Indonesia and Italy in February. Billet exports surged by 121pc in the month to 219,000mt from the prior year, according to the government’s data.
The company’s plant is in Bhavnagar (Gujarat) which is close to Kandla port. Its in-house transport service has made logistics viable for Mono Steel.