Indian billet export activity has remained silent with tradable prices at lower levels, but they were not low enough for buyers seeking additional discounts as markets in Asia and the Gulf are expected to slide further, SteelOrbis has learned from trade and industry circles.
While Indian government mills, usually the most active exporters of semis, continue to desist from export trades, private mills have cut ex-India tradable prices to $560-580/mt FOB compared to $570-590 FOB a week ago. The new level corresponds to $610/mt CFR Southeast Asia on average, while buyers were seeking valuations of below $585/mt on CFR basis and some bids received from Gulf buyers have been as low as $570/mt CFR.
“The current trade conditions in most destination markets are bearish. A huge fall in prices is expected by buyers in most regions. But the bids received over the past week are lower than the costs of production of some mills that do not have captive raw material sourcing,” an official at a private mill said.
“But the slight positive is that pressure to sell overseas and check inventory rises is easing somewhat with the rebound in local billet merchant trade prices, riding on the back of the strong recovery in rebar prices,” he said.
Trade circles said that trade billet prices reversed their earlier prolonged downtrend and have recorded large gains across most regional markets. Billet trade prices gained a strong margin of INR 3,400/mt ($43/mt) to INR 49,200/mt ($624/mt) ex-Mumbai and are up INR 5,000/mt ($63/mt) to INR 48,600/mt ($594/mt) ex-Raipur in the central regional market.
$1 = INR 78.80