India’s Steel Authority of India (Sail) has received multiple export orders in June. Sail’s Bokaro steel plant in Jharkhand has received 33,000mt HRC and 20,000mt pig iron orders from China in June.
In May, the company exported 30,000mt of CC slabs to China and around 3,000mt of HRC to Nepal. Sail is expecting increased export orders for flat products from Middle Eastern countries like the UAE, Iraq and Bangladesh, Srilanka, Vietnam, Taiwan, and Nepal. The company is shipping these orders from nearby seaports — Haldia in West Bengal and Paradip in Odisha.
Davis Index heard a steel mill based in Gujarat is offering billets in the export market at around $405/mt fob India, which is up by $10-15/mt from the last deal.
Besides, Sail’s Bhilai plant in Chhattisgarh is also active selling in the overseas markets, particularly China as reported by Davis Index.
In June, most Indian steel mills have ramped up production in line with demand after operating at around 50-60pc capacity utilization in May. Market participants expect domestic demand to return to normalcy by Q3 FY2021 (Oct-Dec).