Though offers for ex-India billet have been kept stable over the past week, with mills staying active in offering overseas, bids from traders have mostly been heard at lower levels, particularly for further sales to Southeast Asia, impacted by the negative situation in China, SteelOrbis learned from trade and industry circles on Wednesday, March 6.
Ex-India billet offers have been maintained at $510-520/mt FOB, but the tradable level has declined by $10/mt to $505-515/mt FOB. A few market sources said that all prices above $505/mt FOB will hardly work out late this week or early next week if the situation in China does not improve.
A government-run mill floated an export tender for 30,000 mt of 150 mm billet recently with sources claiming the highest bid would hardly be above $505/mt FOB, considerably lower than $525/mt FOB received against an export tender for a similar tonnage which closed last month. The final decision on the tender will be made by the mill at the end of this week.
An Odisha-based mill has confirmed a trade last week to an Asia-based trading firm at $515/mt FOB for early April shipment.
A western coast-based integrated mill has reported negotiations for 20,000 mt for the Middle Eastern market at $510/mt FOB, the sources said.
“Indian mills are active in offering semis, even though the much-expected rebound in price has failed to materialize amid pressures from China. Buyers’ sentiments are still negative in most destinations. Bids for May shipment are also lower than current price levels as prices in China are expected to remain soft,” a source at a private mill said.
Meanwhile, in the local market, merchant trade billet prices have staged a strong performance on back of the recovery in the rebar market, gaining INR 500/mt ($6/mt) to INR 43,300/mt ($522/mt) ex-Mumbai and up INR 250/mt ($3/mt) to INR 39,950/mt ($482/mt) ex-Raipur in the central regional market.
$1 = INR 82.90
