Indian billet export prices are holding firm, Kallanish notes. Offer prices for billet to China are rising because of the buoyant Chinese steel market.

Last Friday, an Indian steel mill's export tender for 18,900 tonnes of 125mm billet attracted the highest bids of $379/tonne fob India for 3sp grade, and $384/t fob for 5sp grade, Indian traders say. Another Indian mill had an export tender on Thursday for 30,000t of 150mm 3sp billet, and a Chinese trader posted the highest bid at $384/t fob India. Freight from India to China is estimated at $15/t.

Traders say Friday's bid price is slightly lower because the cargo’s load port is Haldia. This port is closer to the exporting mill compared to other mills' proximity to Vizag or Gangavaram, and it has a higher stevedoring cost, a trader says. There is also a draft restriction at Haldia which means that the maximum vessel size is only 20,000t, one trader says.

Another says that the 125mm size is less popular compared to the 150mm size because of a limited number of customers in China. “The market is still in the same price range,” he observes.

Another Indian mill sold a second 30,000t cargo of Indian billet at $403-405/t cfr China over the weekend, following its first cargo at $400-403/t cfr last Thursday. The Chinese billet import market is firming because of strong steel futures, a regional trader says. Main Indian mills' offers have risen to $408-410/t cfr China, he adds.

Billet prices are fairly stable at above $400/t cfr, says a Chinese trader. In China’s domestic market, billet prices recovered to CNY 3,330/t ($471/t) in Tangshan on Monday, unchanged from last Thursday. Prices had dipped by CNY 20/t over the period only to rebound on Monday.