Indian Mills Exporting 180,000 MT Billets - Is This The Magic Wand India is Looking for?

India has witnessed to be actively functional in the global billet market, this week. The country was noted to book approximately 180,000 MT billets this week, majorly to China.

Both public and private sector mills were reported to be actively floating offers. India is largely under lockdown and amid sluggish domestic demand, the mills are largely dependent on the exports.

Even big trading houses like VINVI have huge inquiries for Steel Billets in 150 MM square sizes at the moment. Some private mills booked 100KT billet export order at USD 365-375/MT CFR to China. June shipment.

Vizag Steel floated a tender for 60KT Billets and sold half 30KT already to China at USD 350/MT FOB for May shipment. The unsold quantity, the mill has issued the fresh spot sale tender.

As SteelMint informed, China mills are aggressively booking billets ahead labor days holidays (May 01 - May 05). Current offers in China for billet are at RMB 3,080/MT Ex-Tangshan levels.

VINVI's Director, Mr. Vicky Mathur is positive on the post-lockdown steel demand. He stated that as India will be the next hub for the world, steel industry will flourish for all. Indian mills should keep their focus on domestic marketing and exports. This is the time India can enter all the markets where China used to rule.

JSPL MD, Mr. V.R.Sharma, said, we had some export orders and we decided this is the right time to focus on them. (Because of the lockdown) the railways and ports are not overburdened.

We had started booking export orders from February scheduled to be shipped in March and April. Customers still want us to complete the orders because they can stock the product till the pandemic passes.

In fact, we are booking more orders because customers can see that we are not invoking force majeure, when so many companies in the world are invoking it. Therefore, their confidence in us has increased.

VINVI, a leading prime steel trading house from Mumbai, is all set for export business. They are getting huge inquiries for Stainless Steel, Carbon Steel, Mild Steel Etc. They are currently in the middle of finalizing a steel billet export deal to China of about 25000 MT.

They are also currently active in Stainless Steel imports. The Indian steel industry can benefit from a higher export incentive that will make us more competitive in the global markets.

Along with JSPL, VINVI is also asking for these incentives to be made 10% of exports. This will encourage exports and also bring in foreign exchange. This can be structured as a cash incentive or as pass-through schemes.

Overall, let's hope that on May 03, green zones are opened up. VINVI have already started domestic business.

Thank you for your time!

TEAM VINVI

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Sources: SteelMint, LiveMint, Industry Leaders, Team VINVI

Venue: Mumbai, Maharashtra, India