Indian steelmakers are returning to the export market as Chinese and Southeast Asian buyers raising their bids for billet amid higher ferrous scrap prices this week. RINL sealed a deal for 30,000mt CC billets at $425 fob India this week on advance payment basis. On LC basis, the prices come to around $428/mt.
Indian billet export prices have increased by $5-10/mt since mid-August. Mills are optimistic of securing more export orders on higher international scrap prices due to supply tightness. Earlier, major steelmakers had indicated that their export sales would fall in Q2 compare to Q1 as they refocus on the domestic market due to improved demand.
Davis Index sources in South East reported billet deals at around $455/mt cfr Thailand. A few Iranian mills offered billet at around $410/mt and slab at around $430-432/mt on fob basis. Indian mills also exported HRC at $540-550/mt cfr Vietnam in early September.
India’s state-owned RINL or Vizag Steel has been active in the export market along with other state-owned mills through the pandemic-impacted months. The company has also floated another export tender for 30,000mt bloom. A deal for the same was not confirmed till the time of publication. Buyers from China and other Southeast Asian countries including Thailand, Philippines and Sri-Lanka are actively bidding for Indian semi-finished steel.
RINL raised domestic long steel prices for September delivery by Rs1,200/mt depending on grades in the first week of September. Following the hike, other primary mills revised rebar prices to around Rs38,000-38,500/mt ex-work South India.