Indian government-run steel mills have emerged as among the most aggressive exporters of prime billets over the past week, setting higher price realization targets in the range of $600-620/mt FOB for February-March shipments amid the strong recovery in key global markets, SteelOrbis has learned from company sources.
The government-owned mills RINL and SAIL are now floating tenders aggregating 70,000 mt, with bids to be received within the next three to seven days.
State-run steel producer Rashtriya Ispat Nigam Limited (RINL) has floated an export tender for 20,000 mt of 90 mm billet for early March shipment and will receive bids until January 23, sources said. RINL did not close tenders for 90 mm billet and wire rod, held in the first ten days of January, and so the producer has decided to re-tender these materials. The new wire rod tender is also for 20,000 mt, by January 23.
Earlier in the week, RINL had floated a larger export tender for 30,000 mt of 150 mm billet, bids for which will close on January 20.
Last week, the reference price for ex-India 150 mm billet was at $525-540/mt FOB and targets were up to $560/mt FOB. But it seems that Indian mills have become even more aggressive, seeing sales of ex-ASEAN mills at much higher prices, with their new expected prices at $620/mt FOB.
Market sources are skeptical over the possibility of such higher prices being easily accepted by the market. At least one trader from Singapore said that it would be good if sellers had bids at $570/mt FOB.
Another government-run mill Steel Authority of India Limited (SAIL) has also floated an export tender, for 20,000 mt of 150 mm billet for March shipment, with the minimum price target of $610-615/mt FOB, the sources said.