Indian billet export activity has continued to remain quiet with lower price offers by some sellers not matching bids and mills not pushing overseas sales strongly amid the recovery in prices in the local market and expectations of similar gains in export prices too, SteelOrbis learned from trade and industry circles on Wednesday, July 6.
Indian billet prices may have hit a bottom and be poised for a recovery similar to the trend in the global scrap market and, coupled with the consolidation of the local market, sellers have not been willing to cut prices to match lower bids and conclude deals now.
The sources said that, while some mills’ ex-India billet prices were heard at $550-560/mt FOB, bids received were lower at $520/mt FOB at the highest from Asian buyers. But sellers were not interested. This compares to the reference ex-India billet price range of $560-580/mt FOB a week ago.
“Raw material prices… iron ore and scrap.. are showing a strong recovery. Hence, the low-price regime for semis is nearing the end in this cycle. Sellers of low-price billets in Asia and the Gulf are either retreating or increasing prices. Our assessment is that the workable price will touch $590-600/mt FOB soon and we are working on new export allocations accordingly,” said an official at a government-run mill, which has not floated a semis export tender for over a month.
According to at least two officials at private mills, with the rise in the local billet trade price and the recovery in the rebar market, inventory pressures have been easing and sellers have not been inclined to accept bids below the $560/mt FOB mark and instead are waiting for an imminent rebound in the Asian and Gulf regions before submitting offers.
Sources said local trade billet prices are up INR 300/mt ($4/mt) to INR 49,500/mt ($624/mt) ex-Mumbai and up sharply by INR 1,200/mt ($15/mt) to INR 49,800/mt ($628/mt) ex-Raipur in central India.
$1 = INR 79.30
