Ex-India billet offer prices have been kept relatively stable even as sellers retreated from exports in the face of declining bids from Asia and the Gulf region and amid the slight revival in local sales following the revival seen in the rebar market, SteelOrbis learned from trade and industry circles on Thursday, March 14.
Ex-India billet target prices are at $510-520/mt FOB, but sellers are not pushing sales overseas after receiving bids at $490-500/mt FOB. The competition with Chinese exporters, as well as with the flexible offers from Iran and Russia which are still present, has become tougher.
The sources said that at least two sellers, a government mill and an Odisha-based private mill, are heard to have pulled back aggregate spot offers of 60,000 mt as deals fell through owing to the wide disparity between bids and offers.
“While we think that reports of $490/mt FOB are too low and exaggerated, the workable price [from the Asian seller] is at around $500-505/mt FOB and slightly higher at $510/mt FOB, but China is aggressive, and Indian sellers don’t want to follow,” a source at an Indian mill said.
“Also, the Indian rupee is on an appreciating trend, moving above INR 83.00 to the dollar, lowering exchange rate benefits for sellers, when margins are already under strain. Indian mills are also seeing fast movement of semis in local sales after rebar prices have shown a recovery,” the source said.
Meanwhile, in the local market, merchant billet sale prices have gained INR 200/mt ($2/mt) to INR 43,500/mt ($525/mt) ex-Mumbai and are up INR 200/mt ($2/mt) to INR 40,150/mt ($485/mt) ex-Raipur in the central regional market.