Buying interest in ex-India billet from Asia has improved slightly in terms of the number of inquiries, but the workable price is below the $600/mt FOB mark and some sellers are still turning down bids, supported by the rise in billet merchant sale prices in the local Indian market, SteelOrbis has learned from trade and industry circles.
Asian traders have been present in greater numbers, submitting bids, but only seeking to conclude deals in the range of $590-600/mt FOB. But most Indian mills are still deferring offers, waiting for the target floor price of $610/mt FOB and above, while the rise in local prices is minimizing immediate risks of inventory increases.
Trading circles said that an Indian government-run mill sold some 10,000 mt of 150 mm billet, receiving the highest bid of around $595-598/mt FOB, about $2-5/mt lower than a tender closed earlier in the month. Yesterday, an Indian producer opened an auction for 19,000 mt of billet.
Import CFR prices in Southeast and East Asia have remained at $640-650/mt for now, stable compared to deals signed in this range last week.
“The number of buyers active has improved. But they are only willing to close a deal at the right price, which is not above $600/mt FOB, indicating persisting weak demand in the Asian market. Sellers are preferring to wait and watch how the price trend emerges once bookings for March-April commence in a few weeks from now,” a source at a state-run steel producer Rashtriya Ispat Nigam Limited (RINL) said.
“Sentiments in the export market are very divergent ranging from deep bearish to moderate optimism. Optimistic sellers are waiting in the wings anticipating that prices in Asian markets will rebound on the back of a post-winter revival of rebar demand in China. At the other end, bearish sentiment is backed by expected ex-CIS and ex-Iran oversupply,” the sources said.
Meanwhile, the local Indian billet market has staged a reversal with prices gaining INR 500-750/mt ($7-10/mt) to INR 41,500-41,750/mt ($552-555/mt) ex-work, riding on the hardening of sponge iron and rebar prices, sources said.
