Indian primary steel makers eyed exporting billets for better realisation as Indian currency depreciated again to Rs76 against US$1 as on April 1 from Rs75.47 on March 29. Domestic markets have come to a halt amid the COVID-19 lockdown and resulting weak demand.
Chinese steelmakers have placed orders for billets in an open arbitrage window. RINL is heard to have sold 30,000mt of billets for May shipments at $355-356/mt FOB India or $375-376/mt cfr China.
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 daily index for rebar in Mumbai remained unchanged at Rs33,400/mt ($438.03/mt) as operations continue to remain shut due to lockdown imposed by the central government till April 14. The daily Davis Index for billet in Mumbai also settled flat at Rs28,700/mt ($376.39/mt) ex-works.
The daily Davis Index for rebar in Raipur remains unchanged and settled at Rs31,200/mt ($409.18/mt) ex-works in the absence of trading. The daily index for billet settled at Rs26,500/mt ($347.54/mt) ex-works Raipur, also flat.
In Mandi Gobindgarh, the daily index for ingot remain unchanged at Rs29,800/mt ($390.81/mt) ex-works.