Indian billet export prices have continued to move upward with lower availability for exports from China and rising graphite electrode prices.
In the absence of Chinese billet from the export market, billet prices across the globe have increased substantially, including India. Current offers for 150*150mm billet of grade IS 2830 (eduivalent to 5SP) is assessed at USD 480485/MT FOB India main port (bulk shipment) where as 3SP at around USD 475-480/MT FOB India.These levels were last seen in November, 2014.
Steel Mint’s last assessment for 150* 150mm billets was at USD 450-460/MT FOB India.
Market participants mentioned about limited supply of billets as steel mills want to observe rising prices in global market.
“No private mill is offering billets in bulk quantity as they are closely watching prices in global market. Although no deal has been done, but buyers will not mind paying USD 475-485/MT FOB India for BF route billet. “said a trading house based in Mumbai.
There are no transactions taking place from China, but price indication for 150*150mm billets should not be less than USD 500/MT FOB China main port.
Vizag Steel (also know as RINL) tender is due on 9th August for 15,000 MT of billets and 20,000 MT bloom for end September delivery.
Higher graphite electrode prices
Rising graphite electrode prices is another reason. Notably cost of electrode for making per tonne of steel has increased from USD 3/MT to about USD 35/MT in last few months. This is owing to rising demand of electrode in China.
Source Steel Mint powered by Keyvan Jafari Tehrani
