According to sources in the market, Indian state-owned mills RINL has closed its billet export tender at higher than expected price recently. However, the final destination for this material is still unknown as the buyer is an international trading firm.
A 30,000 mt of 150 mm billet have been sold at $430/mt FOB. Earlier the targeted price has been heard at $427-428/mt FOB, as SteelOrbis reported on Friday. Overall offered volume for billet from India has been reduced lately due to a better domestic market, which supported higher price levels. The previous tender has been closed at $425/mt FOB, as reported earlier.
“It happens when allocation is limited and there are a higher number of bidders,” a trading source said.
Tender FOB price level at $430/mt FOB corresponds to minimum $455/mt CFR Asia, which has been assessed too high for the majority of buyers for now. China, which was one of the major buyers of Indian billets, has been inactive in purchases recently due to local price decline last week. In Southeast Asia, buyers from the Philippines prefer to buy other billet sizes like 125 mm or 130 mm. Importers from Thailand have been in negotiation for an ex-Iran billet at $440-445/mt CFR, but those who are not buying from Iran, can consider a higher price level for Indian origin billet, according to sources.
SteelOrbis reference price for imported billet in Southeast Asia has reached $450/mt CFR last week.