Ex-India billet prices have weakened over the past week due to sluggish international market conditions and sellers’ attempts to increase overseas sales volumes in anticipation of a decline in aggregate domestic demand, SteelOrbis learned from trade and industry circles on Wednesday, March 20.
Ex-India billet prices have settled at $490-502/mt FOB, versus $490-510/mt FOB last week. But while last week all bids below $500/mt FOB were rejected by sellers and they assessed the real market level at near $505/mt FOB, this week they agreed on lower levels. More sellers have entered the export market given the weak demand outlook in the months ahead, with re-rollers expected to reduce output of long products.
According to sources, a government mill received the highest bid in a 30,000 mt tender in the past week at $502/mt FOB, while it is floating another fresh tender, also for 30,000 mt of 150 mm billet.
An Odisha-based steel mill has reported a trade for 15,000 mt for an Asian trader at $495/mt FOB, while another eastern India-based mill has concluded a deal at $500/mt FOB, for delivery to the Middle East, sources said.
“Indian sellers have to accept lower prices in line with the trend of dropping prices and are pushing deals as there is demand but only at lower prices,” a source at the Indian mill said.
“Indian mills are reconciling to low local demand for finished steel during the election months and hence are aggressively concluding deals for semis for deliveries during April-June to prevent inventory buildups during the period,” the source said.
Meanwhile, in line with the sharp decline of the rebar market, trade billet prices have lost INR 1,100/mt ($13/mt) to INR 42,400/mt ($512/mt) ex-Mumbai and are down INR 650/mt ($8/mt) to INR 39,500/mt ($477/mt) ex-Raipur in the central region.