OMAT WEST LIMITED

Market Research on Billet

Outlook on Exports

INDEX
Topic Exploration Page No.

1. Introduction about Billet export & Other Info 1

2. Market analysis 1

3. Licensing & Documentation required 1

4. Billets types that are in Export market & specification 2

5. Commercial Analysis 3

6. Export analysis for MS billet 6 – 15

7. Country wise export detail 16

8. Indian ports 16

9. Conclusion 17

10. References 18

List of Figures & Tables Page No.

1. Billet chemical specification 3

2. Avg. billet price trend 5

3. Top Importing nations & country wise trend wise 9

4.Ease of trade with countries 10

5. Export analysis in terms of % export 11

6. Billet export trend year wise 12

7. Historical billet analysis from India 13

8. Top port for export based on origin 13

9. Billet product with export value tends 15

10. Trend of Importing market – origin - India 14

11. Export route plan with port on India Map 16

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1. INTRODUCTION: Billet is the ingot form of mild steel, alloy steel, copper, and aluminium. To export from India, we
need to get various licenses and registrations, including an Import Export Code (IEC) license.
Apart from this, we need to get information about the product specification/property, salt analysis test, corrosion test –
Must Require while we trade/export Iron & Steel related products, then potential market and buyers require to know.
2. MARKET ANALYSIS
2.1 Global billet market: Expected to grow at a CAGR of 3.5%, expected to reach a value of 5.2 billion usd.
Country wise, North America had largest global steel billets market in 2017 with a share of 39% - Significant.
Trend: Global steel market valued = USD 928 billion in 2022.
Projected to reach USD 1,210 billion by 2031, growing with a CAGR of 3.5% ( 2023–2031)
2.3 Major Exporter / Contributors in world: Vietnam, India, China – rest are Japan, Korea, Bhutan, Russia, brazil- specific
for MS billet.
2.4 Potential market: Our Potential target markets for mild steel billet exports: Nepal, Bangladesh, Srilanka, Itlay,
Malaysia, China.
Top 5 Importer of Indian billet are
 China (416.86 USD Million)
 Nepal (187.26 USD Million)
 Thailand (82.56 USD Million)
 Philippines (66.97 USD Million)
 Indonesia (65.46 USD Million) .
The total export value of Steel Billets in these countries is 819.11 USD million. (80%)
5 TOP MARKET PLAYERS:
Nucor Corporation, US (Billet buyer)
Bao group
Ashan steel
NLMK (Billet producer)
ThyssenKrupp
ArcelorMittal
JSW Steel Limited
Hyundai Steel Company
Ansteel Group
JFE Steel Corporation
NSSMC Group
3. Licensing required: IEC License -) License approval authority is Directorate General of Foreign Trade (DGFT),
Export Import License, CIN number. CHA (custom house agent) person play role of documentation, if we’ll start this
business. (LC No. Ex. HBLIUI09730079)
Then finally it come to Finding buyers/broker for trade and starting business.
India's exports represent 2.7% of world exports for the Products of Iron and steel (Inclusive of all Iron & steel product).
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 India's rank 13 - for Iron and steel product export in all over the world with avg. distance of importing countries is
5615 km. (Apart from neighbor countries, we do export to non-Asian countries).
4. Total trade category of - Iron and Steel products (HSN code – 72)
4.1 TYPES OF STEEL IN EXPORT MARKET:-
1. Special steel: Silicon Steel, Structural Steel, Mold Steel, Spring Steel, Gear Steel, Bearing Steel
2. Stainless steel: Stainless Billet, Stainless Bar, Stainless Scrap, Stainless Sheet, Stainless Pipe
3. Steel long: Steel Wire Rod, Steel Section, Steel Pipe, Steel Rebar
4. Steel flat: Steel HR, Steel CR, Steel Plate, Steel Coated, Steel Strip (Strip – length/width ratio is large)
5.Steel raw material: Iron Ore - Steel Scrap - Steel Billet - Coal - Coke – Charcoal - Wood - Stainless Billet –
6. Stainless Bar: Stainless Scrap - Sheet – SS Pipe- SS Wire Rod - Steel Pipe

FACT - India Exports 2% of world total Export – roughly 400 Mn $ total export done by India.
- Out of this export, roughly 1 Mn $ export of Billets is done (MS billets & alloy billets).
- 0.25 % of India’s total Export is reported to India’s Billet Exports.

4.2 Billets types in Export: Billet of steel only consider:

Type 1. Mild steel / Non-alloy steel Billets: HSN code – 72071920
Type 2. Stainless steel Ingots / Billets: HSC code – 72189910
Type 3. Other alloy steel billets: HSN code – 72249091
Type 4. BF grade Billets / Blast furnace
Type 5. Square Steel Billet Q235 3SP Grade Prime Quality

Product Description: M. S. Billets are used for rolling of TMT Re-Bars of Fe415 to Fe600 Grade and various
other M.S. structural steel products.
Type 6. CRS Billets CRS Billets:- Corrosion-resistant billets – It has Chromium content up to 0.25%. Are used for rolling
of CRS TMT Re-Bars and other CRS products.

 Chemistry of CRS billets: The following is the chemistry of CRS billets in export:-
Chemical Composition
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Type 7. Special Alloy Billets are used for rolling of any special grade TMT Re-Bars like earthquake-resistant TMT and
for special grade structural steel products, Stainless Steel structural.
 Main Feature Square Steel Billet Q235 3SP Grade Prime Quality billet:- (3sp is Russian grade for carbon
in rang of 0.14-0.22 wt% Carbon.

 Chemical specifications:- Trade billet chemistry is not very different from what we made.

 Raw elements (C, Fe, Ni, Mn, Cr, Cu.)  Smelted ingots in Electric arc furnace AOD mein
refining  hot rolled into billets  pickling in acid liquid cold drawn polished by
automatically machine  cutting into pieces  checking quality  Market (trade)
 Above method is valid for CRS billet manufacturing as well in Plant.
Type 8. Stainless Steel Billets:
In stainless steel, grade is decided by the chemical composition of the billets – before rolling we can
decide the grade of the product
 Major Steel Grade from SS billets
301, 302, 304, 304L,309,310,316,316L, 316Ti, 317L,321,329,347, And All Other 300 Series Grades.

Top exporter from INDIAN player: 1. MMTC (Metals and Minerals Trading Corporation of India)
2. ASV Trade – Exporter of Billets
Exported billet Manufacturers: 1. Neelachal Ispat Nigam Limited, Duburi, Odisha. (Export through MMTC)
Type 8: SS round rolled billets
4.3 Trade Billet Specification
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 Billets Grades: 1. SAE 1006

2. Grade SAE 1008
3. Grade SAE 9254.
4. MS Billets IS-2830 (GR-1) complying FE550D /FE500D
5. Blooms / Grade SAE 1029S
6. SAE 8620
 Size in Export:
o 12 mtr (mostly), Or 6 mts // 3 mtr billet is not in numbers.
o 100X100 mm / 120x120 mm // 80x80 mm // 165X165 mm // 130x130 mm

 Certification Required: ISO9001, OHSAS18001, ISO/TS16949, SA8000, FSC, GSV, ISO14001,

ISO13485, Other, ISO10012.


5. Commercial analysis Of Billet Export:- In this part costing analysis is done based on average price data.
 Price of Billets in Export & other costs:
 Export price – At a glance:-
1. Export / Custom duty
2. Freight -1 : Plant to port / Road transportation
3. Port stacking / Ground usage charge
4. Stevedore (loading & unloading charge @ port)
5. Vessel Nomination (Vessel agent)
6. Surveyor charges (for Ex. IGI – 3rd party surveyor : Work of draft survey
 These charges are limited when we are doing FOB
 In case of CIF route – these charges will be add up at the destination port as well. So, rougly it will be
more preferable to go with FOB route.
5.1 Data Analysis:-
Making Cost of Billet: Rs. 40 – 41 per kg
Selling price of Billet in Indian Market: Rs 43 – 44 per kg
Our margin in Indian market: Rs. 1500 - 2000 per tonn.
Selling price while Export: Rs 46 – 48 per kg.
Extra margin that we will get by expanding our market = Rs. 6000 – 8000 per tonn.

Billet Making cost = 40

Selling price (Indian Market) 41 - 42 Selling price (Export) 46 - 48
Margin (Rs) 1-2 Margin (projected) 5-6

 Increase in Our Gross Margin = Rs. 4 per kg. / Rs. 4000 per tonn difference on an average.
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This is our FOB based

Average Export Price: (Avg. billet export price 600$/ Tonn – INR 51K) – per tonn – without freight
Prices lies between 510-600$ depending on the country and billet chemistry.
Billet 5sp: Price 365$
Following graph can be studied for pricing of Indian billets:- [Refernece: steelmint.com]
Conclusion: Average pricing of billet in export = 500 - 570 USD per Tonn [FOB price]

5.2 Average Billet price – Trend of 8 months:-

5.3 Export billet – 2 ways:

(a) CIF route- Cost Insurance freight (Inclusive of whole)
(b) FOB – free on board (upto loading in ship is our responsibility)
 Some of Enquiry generated from Potential countries:-
Buyer From Malaysia - Kuala Lumpur (Malaysia is among top importer from India)
 Enquiry generated at portal - Steel Billets
 Specifications : 100x100 / 3 Meter Billets
 Chemistry: Low Sulphur And Phosphorus (S+P < 0.75 %)
 Quantity Required : 500 Metric Ton/Metric Tons
 2 ways of Shipping Terms in billet export: CIF (or) FOB.

 Total export from India =

 Physical and Chemical specifications of Billets – exported y MMTC (Exported volume – 20,000)

Top exporter: 1. MMTC (Metals and Minerals Trading Corporation of India)

2. ASV Trade – Exporter of Billets
Exported billet Manufacturers: 1. Neelachal Ispat Nigam Limited, Duburi, Odisha. (Export through MMTC)

5.4 Market Overview:-

 Global Billet export Trend, Recent figures, Demands, Key players

 Identifying Potential Target markets for mild steel billet
5.5 Regulatory Environment: Effect of un-controllable parameter on global billet export market:-
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5.6 Top Buyers of Billets from India – Detailed analysis:

1. Jagdamba P Steel Ltd., Nepal- Big player in steel sector.
(Non- Integrated steel plant, so he buy most of billets from India, doing business in TMT, structural.)
Reference [ jagdambasteels/about/ ]
2. Himanalyan Bank Ltd., Usa
3. Hydro Aluminium Metal LLC, Usa
4. Concord Resources Limitd, Usa
5. Jagdamba Enterprises, China
[Reference: https://www.volza.com/p/billet/buyers/coo-india/]
India most of billet export – lands to
India export data of Billet,

 Nepal make maximum share with 22,840 shipments

 United States –
 10,769 and
 China - 6,810 shipments.

5.7 Export analysis for Steel Billet

If we are aiming to export Steel Billet, then in this research we’ll figure out various information such as
(a) Export data of Steel Billet
(b) Steel Billet worldwide buyers and importers (with respect to India),
(c) Procedures to export Steel Billet,
(d) the duties and taxes applicable on the export of Steel Billet from India,
(e) Government norms and rules for export.
Reference 1: [https://connect2india.com/global/export-Steel-Billet-from-india]
Latest data of Billets exports: HSN 72071920 & 72071910
Department of Commerce - Export: Commodity-wise Given Value are in US million $
Last 10 year data analysis: From year 2013 to 2023 – Billet Export –
Year 2022-23 – 599.97 USMD

Year 2021-2022 – 1,546 USMD

Year 2019-2020 – 763 USMD

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Year 2018-2019 -- 813 USMD

Year 2019 – 2020 – 763 USMD

Year 2016 – 2017 – 399 USMD

Year 2014- 2015 – 360 USMD

5.8. Average Billet export from India is = 1200 Million $ per year basis, a constant growth rate (CAGR) can’t be
predicted for billet export from India, considering the foreign market and market fluctuation.
Quantity wise billet export: Value in Thousand Kg (OR) Tonns

Year 2022 – 2023; values in Kgs.

Estimate: Roughly India do export of 10 Lkh tonn to 13 Lakh Tonn (Maximum) on year basis.
In the above reference, the data provided on the export analysis shows that there are almost 36 countries and territories,
which actively import Steel Billet from India.
5.9 List of countries is given below:-
 Total export value: The combined value of total exports is 1 Billion $ (1,013.14 USD million) for India all
imports of billets.
 Top five countries to export Steel Billet from India are: China, Nepal, Philippines, Indonesia.
 Data on Steel Billet export - India’s top 5 trade partners (Billet)
 [Total export value of the top 5 countries is 819.11 USD million which is the 80.85% of the total export value of
Steel Billet] – Potential countries are: Nepal, Indonesia, China, Philippines.
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 Where to export Steel Billet – Five neighbour potential countries.

5.10 Potential Market:

Country Value (USD Million)

China 416.86

Nepal 187.26

Thailand 82.56

Philippines 66.97

Indonesia 65.46

Shri lanka -

Bangladesh -

5.11 Top countries for Steel Billet export from India:

Graph: Top importing nations for steel billet

Although China is large producer of steels, but also they do Import of Billets from India.

5.12 Country Wise Trend - for Steel Billet Export (USD Million)
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5.13 Conclusion of above graph:- Top trending importer are – Nepal, Kenya, Philippines, Indonesia, Malaysia, Sri
Lanka.
Few facts: In FY 2020-2021 (Apr-Nov), Around 416.86 USD million value of Steel Billet was exported from India to
China. It was roughly around 41.15% of the total export of Steel Billet.
Monthly Export Value: The value of Steel Billet exported from India in October 2020 was 80.31 USD million.
Major countries where Steel Billet was exported in October 2020 are Nepal (28.63), Kenya (21.03), Philippines (14.69),
Indonesia (6.42), and Malaysia (4.21). [Data in Million USD]

 Recent News related to Billet export:-

 India steel billet ‘Export’ volume increased by 64.75% in July 2023 [India export news]
 Poland steel billet import volume rise: 200% in June 2023 (Potential country)
 Taiwan, China import volume rise by 22% in June 2023 (our Neighbour – Ease of trade)

Figure: Ease of Trade with countries:- Product HSN (720719)

 Ease of trade with countries: Nepal, China, Taiwan, Egypt, Indonesia, Thailand.
Key Findings: For Exports of Product HSN code: 720719

 Potential Market: Nepal, Indonesia and China.

 Trade Ease: India has the closest export links with Nepal.
 Nepal is the market with the highest demand potential for 720719 Semi-finished products of iron or steel.

1.2.4 Export analysis (In terms of Top importers- Product HSN code 720719)
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 Share of india export (HSN code 720719)

 32% for Nepal
 24% for Indonesia
 9% for Itlay
 14% for kenya
 China is also a significant importer of Indian grade Billet.
 Similar pattern we can extrapolate for Product HSN (72071920) – Mild steel billets.
5.13: Trade data and export trends of Steel Billet:-
Following is the year-wise trend of Steel Billet export
Time period considered: Span of 10 years
 Steel Billet export from India has shown significant growth.
 In the year 2009, the total value of Steel Billet export was 134.12 USD million. Whereas the data of 2018 states
the export value of 814.35 USD million, which shows a considerable - 3.4% lower in export volume.
5.14: Steel billets export took place in last 5 years:-
Steel Billet export trends (Year wise)

Year Value $M

2009 134.12

2010 149.99

2011 189.98

2012 220.45

2013 373.27

2014 361.78

2015 152.31

2016 400.699

2017 843.019

2018 814.35

2019 763.69

2020 1,013.14
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 Maximum Export value of Billets: 1 Billion Dollars (for the year 2020)
 Estimated value of Billets export is 10 Lkh tonn to 13 Lakh tonn.

5.15 Historical demand analysis:

Historical export analysis of Steel Billet from India

Export value Trend - Steel Billet (Year wise)

Conclusion: Indian billet export value has increaded over 600% (data taken into consideration is 2009 to 2020).
Similar we can expect in these recent year upto FY 2023.

 Steel Billet is exported from India majorly to Nepal, Bangladesh, Sri Lanka, Thailand, Indonesia.
5.16: Export route plan:
Top ports in India for export of Steel Billet Top origin ports for steel billets
Port Value (INR Million)

KOLKATA SEA 367.54

VIZAG SE 308.845
GANGAVARAM PORT 217.118
MUNDRA 91.957
NHAVA SHEVA SEA 87.123
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Nearest port to Chandrapur: Vizag sea port & Gangavaram port (distance = 780 KM)
Billet trade data with HSN code: SOURCE – Trade Map – ITC.
Price analysis of Billets: According to trade sources- Steel Mint:

 Current offers from private manufacturers are made in the range = 29,700-29,800/MT (INR)
 (USD 475-477/MT) on Ex-Rourkela manufacturers basis.
 Durgapur Ex-Plant at INR 30,800-30,900/MT (USD 492-493/MT).
Reference: [Billet_export_prices.]
5.17 Global importers and buyers of Steel Billet:
Finding buyers/broker for trade and starting business –

GLOBAL COMPANY NAME Main Imported Product Country

Jagdamba Steels Private Limited Billets Nepal

Himalayan Bank Limited Billets Nepal

Energy Engineered Products (Pty) Ltd Billets, Iron And Steel South Africa

Lloyd Star Shipping Agency Billets, Iron And Steel UAE

Magna Business Management FZE Billets, Iron And Steel UAE

Naaz Trading Co Billets, Iron And Steel UAE

Precision Dies & Tools Manufacturing Co Tool Steel Billets UAE

Silsila General Trading LLC Billets, Iron And Steel UAE

Stemcor Mesa DMCC Billets, Iron And Steel UAE

Celtic Steel Limited Billets, Iron And Steel UAE

Holvoet NV Billets Iron And Steel Belgium

Sumitomo Benelux SA-NV Billets, Iron And Steel Belgium

5.17 Number wise – Top countries for MS billet export from INDIA
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Conclusion: : Total of MS billet Export value = 1000 Million USD. – Major export goes to China, Nepal.
Potential market in countries - Nepal, China, Thailand, Philippines, Bangladesh, Srilanka, Itlay, Malaysia.
 Reference: https://connect2india.com/global/Steel-Billets-export-from-india/1
5.18 Properties / Specifications of Billets that are exported:
Secondary Or Not: Non-secondary as well as Secondary (re-melted scrap which is cast into billets – secondary product,
primary product means cast from pig iron- blast furnace)

Shape Exported: Round, Square:

Alloy or alloy billets: Are alloy, Non-alloy
Sizes in export: 150X150mm
Grade: 3SP / 5 SP // 4 SP: (Chemical composition)
Standard: AISI, BS, ASTM, EN, GB
 Required Certification: ISO9001 , OHSAS18001, ISO/TS16949, SA8000, FSC, GSV, ISO14001, ISO13485,
Other, ISO10012
 Brand being Exported from India: Maruti,
5.19 Export detailed Research on Product with HSN code: 72071920 – MS billets:
List of Importing markets for a Billets exported by India (HSN code – 72071920) MS billets.
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 Observations / Conclusion
1. Market is fluctuating – that depend on many global reasons.
2. Potential market: Out of all billets exports market – Nepal is country which do most of billets imports from
India.
3. Nepal is Potential market – followed by Indonesia as a good potential market.
4. Itlay
5.20 List of importing markets for a product exported by India:-
Product HSN – MS Billets : 72071920 Semi-finished products of iron or non-alloy steel containing < 0,25% of carbon
(by Wt.%), of circular cross-section, or a cross-section other than square or rectangular.

Exporte Exported Exported Exporte

PRODUCT
PRODUCT LABEL (Description) d value value in value in d value Exported
HSN
in 2018 2019 2020 in 2021 value in
2022

Semi-finished products of non-alloy steel 728,235

1,633,24
72071920 containing, by weight, < 0,25% of C – 840,123 735,545 1,268,996
2
rectangular/ square – MS billets

Semi-finished products Of non-alloy steel 296

72071910 containing, by weight, < 0,25% of C – 96 61 236 269
rectangular/ square – MS billets

 Findings:
 Export was less during COVID time – but raised in the year 2022.
 Total billet export is roughly 1% of India’s total exports.
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Target Market Analysis: In first phase – we should target our Neighbour Countries, where chemistry requirement is not so
stringent – Nepal is under developing so steel requirement is there – also there are most of rolling companies who don’t
have integrated unit or billet manufacturing.
Geographical Analysis:
5.21 Prioritize target countries

 Based on market size and growth potential and ease of export

Port Preferable for Trade Routes
1. Nepal: Transportation Via Road
2. Export to Italy, US: Ease with Bombay port.
3. China: (Thorough usual trade route)
4. Sri lanka (3% of India - total billet export - goes to Lanka)
Prefferable routes – Via road transportation to chidambarnar port – then via sea route)
5. Thailand (8%
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Nearest port
chandrapur
Nearest port

To do export in Europe countries –

(1) Mumbai port preferable
To do export in Phillipines, Taiwan –
(2) Visakhapatnam port preferable for Export in Europe in countries – sea short route.
Benapole, Bangladesh - port imports maximum 428 shipments of Steel Billets from India ( 48.0%)
(3) Bangladesh: Huge market potential.
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6. Conclusion:
1. Doing Billet export is profitable because there is huge market potential in our neighbour countries – which are
developing countries – so there is great demand of steel is there in these countries – Scope of work.
2. Billet export is not profitable for us because this market of billet is very not monotonous, the market is unpredictable
and sometimes there is 50% depression in export demand (Particular about Billet).
Some of supporting news:-

 Commodity wise there is 53% fall in billet market of Indian billet export [steelmint.com].
 India's billet exports decreased by 57% to 0.63 million tons in the first seven months.
3.

Billet Making cost = 40

Selling price (Indian Market) 41 - 42 Selling price (Export) 46 - 48
Margin (Rs) 1-2 Margin (projected) 5-6

 The extra margin that we will gain with export of billet will be 4000 – 5000 per tonn.
4. As Indian market is always being of limited potential, where we see % fall in sales year by year,
 In such Scenario, if we will start trading Out-side India, then a New market opportunity will be open for us where
we can dump 2-3 times of total billet that we sell in Indian market.
 Considering market player in India, we can explore the opportunity of export in Nepal (Second largest share of
export).
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7. REFERENCES:
 Nepal Jagdamba steel: [jagdambasteels/about/]
 Volza trade support: [https://www.volza.com/p/billet/buyers/coo-india/]
 Industry growth Inside: [https://industrygrowthinsights.com/report/steel-billet-market/]
 ITC trade map [https://www.trademap.org/Index.aspx]
 Asian metal [https://www.asianmetal.com/Steel-Billet-Import-Export-Data/]
 Connect2india [https://connect2india.com/global/Steel-Billets-export-from-india/]
 https://connect2india.com/global/Steel-Billets-export-from-india/1
 https://connect2india.com/global/Steel-Billets-export-from-india/1
