Ex-India billet prices have improved gradually over the past week, with deals working out at slightly higher levels, while a number of private local mills have been holding back offers, expecting a rebound in key end-user markets, SteelOrbis learned from trade and industry circles on Wednesday, February 28.
Ex-India offer prices from medium-size and small mills are still near $510-520/mt FOB, but deals have been reported at improved levels of $515-525/mt FOB compared to low levels of $500-510/mt FOB a week ago.
According to the sources, private mills have been holding back offers, expecting prices to consolidate higher, reacting to reports of price improvements in China. Also, local sentiments are also buoyed by reports that a government mill which held an export tender for 30,000 mt on February 27 received the highest bid of around $520-525/mt FOB, significantly higher than expected by market sources. A few market sources said that the deal seems to have been done and that the material is expected to be supplied to Sri Lanka. But in other sales destinations, workable prices for billets are still lagging behind.
An eastern India-based integrated mill has reported a trade with an Asian buyer at $515/mt FOB and another tonnage to the Middle East is rumored to have been sold at $518/mt FOB, which, however, has been not confirmed by the time of publication.
“Billet prices are stabilizing in most destinations. We are not sure of the upside potential going forward, but the stability is a positive sign,” a source at an Indian mill said.
“At best, local sellers are not having to drop prices too much to conclude deals. But any upside potential will still face headwinds from too many sellers pushing volumes for export. Ex-Russia prices are still low and a challenge to local exporters,” the source said.
Meanwhile, in the local market, trade billet prices have continued on a recovery trajectory, gaining INR 500/mt ($6/mt) to INR 42,800/mt ($516/mt) ex-Mumbai and up INR 300/mt ($4/mt) to INR 39,700/mt ($479/mt) ex-Raipur in the central region.
$1 = INR 82.90