Indian billet export activity has been moderate over the past week, but the latest bids and rare deal prices have been lower than anticipated by mills in view of rising competition and buyers resisting any hikes, SteelOrbis has learned from trade and industry circles.
Large Indian mills are heard to be submitting offers in the range of $525-535/mt FOB, but limited deals and bids are still the same as last week at $510-515/mt FOB.
According to the sources, wider bid-offer disparities for Asian destinations prevented Indian sellers from concluding any deals for significant volumes.
A tender-based export offer for 30,000 mt of 150 mm billet by a government-run mill which has just closed was heard to have received a highest bid of $510/mt FOB and the final contract has not yet been signed as the price was about $10-15/mt lower than internal expectations.
Sources said that an Odisha-based integrated mill has reported a sale for the Middle East at $515/mt FOB.
“Buying is relatively stable. But there is strong resistance faced by sellers in increasing the price. Indian semis are facing strong competition from multiple sellers in the market. Iran is heard to be an aggressive entrant into the export market. Indian mills are hence very discerning in concluding sales at constant prices,” a source said.
Meanwhile, in the local market, billet trade prices have remained stable though amid thin trade activity. Billet trade prices are unchanged at INR 42,600/mt ($512/mt) ex-Mumbai and are also unchanged at INR 39,650/mt ($477/mt) ex-Raipur in the central region.
$1= INR 83.20