Large Indian mills have resumed submitting higher billet export offers during the past week, but deals have remained elusive with sellers not pushing export sales since, after a brief correction semis prices in the local market have surged, while conditions in key markets like the Middle East have remained quiet with buyers resisting the higher offers, SteelOrbis has learned from trade and industry circles.
A few mills submitted ex-India billet offers at $455-460/mt FOB, up from $445-450/mt FOB earlier. Bids received from the major outlets abroad amid overall quiet market conditions have been reported at $440/mt FOB at best, but sellers have been unwilling to adjust and push sales after the local market overcame a brief correction and resumed a sharp upward trajectory, reflecting the bullish trading activity seen for long products.
The sources said that large local mills hiked offer levels seizing opportunities offered by the long holiday in China, but they were not deterred by low bids and resistance from buyers, given the rebound in prices of semis in the local market and the steady tightening of supplies to re-rollers.
Despite attempting to push up ex-India offers, overseas sales took a backseat to the return of bullish local market conditions. Billet trade prices have surged INR 1,200/mt ($13/mt) to INR 44,500/mt ($491/mt) ex-Mumbai and are up INR 2,900/mt ($32/mt) to INR 42,200/mt ($466/mt) ex-Raipur, with reports of the tightening of supplies from integrated mills to rolling mills, sources said.
