Ex-India billet prices have largely been kept unchanged over the past week, while some sellers have attempted to nudge up prices, but have failed to conclude deals amid the divergent outlook of buyers and sellers in the Asian region, SteelOrbis learned from trade and industry circles on Wednesday, August 17.
Ex-India tradable billet prices have been maintained at $470-480/mt FOB, after the decline seen last week. At least one government mill was heard to have put out a spot sale offer for 30,000 mt with the minimum target price of $500/mt FOB, but no trade was confirmed in the market.
The sources said that most sellers - local private mills - were holding back deals at current low prices, expecting a strong September rebound in Asia, but resistance in the market has been evident from buyers rejecting offers close to the $500/mt FOB mark.
A second government-run mill has reported closing a small-volume trade at $485/mt FOB over the past week and, though the buyer’s identity was not disclosed by the seller, sources claimed that the bid price was on the higher side of expectations, considering the weak demand in most overseas markets.
“We are hearing a lot of speculation of some offers at the $500-520/mt FOB mark and above in Asia. But our marketing personnel are doubtful if any firm deals have been concluded at these prices. The higher offer levels can reflect sentiments but not the reality,” an official at a government mill said.
“Sentiments are positive from a sellers’ perspective but its impact on prices is still uncertain. There is still a lot of resistance among buyers in Asia and the Gulf, our key markets,” he said.
Sources said that mills were also able to hold back overseas sales owing to the recent sustained gains in the price of semis in the local market supported by the rebound in rebar prices.
Local billet trade prices are up INR 1,700/mt ($21/mt) to INR 52,300/mt($659/mt) ex-Mumbai and stable at INR 51,200/mt ($645/mt) ex-Raipur in the central region.
