Indian Billet Export Prices Hit 2 1/2 Years High

Indian bulk billet export offers continue to rally as traders take positions on anticipation that prices may increase further. SteelMint's assessment for 150*150mm billet was recorded at USD 430-435/MT FOB India main port, against last week's assessment of USD 425-430/MT FOB India.

According to participants, Indian billet tender of 15,000 MT of grade 5SP by an Indian state owned mill, fetched bids over USD 430/MT FOB Haldia port. These bids are higher by USD 5-7/MT as compared to last billet tender which concluded early this week at USD 428-429/MT FOB India, by Vizag steel.

It is expected that deal will be concluded above USD 435/MT FOB India. Indian billet export offers have hit 2 1/2 years high as these levels were last seen in December 2014.

" Traders are quite active and bullish on rising global steel prices. There is shortage of billets in the market as Chinese supplies remain missing and Russian and Ukrainian are booked for next month. It looks that global billet prices will remain firm for next few months." said a trader, who actively trades in Indian and Chinese billets.

Rising scrap and coking coal prices support billet prices

Billet traders also feel that rising scrap and coal prices will support billet prices in near term. Notably  scrap prices have increased by  USD 15-20/MT and coking coal prices by USD 25/MT in last one month.