Indian billet exporters have attempted to nudge prices up slightly over the past week to offset rising energy costs, while trading to Southeast Asia has faced difficulties owing to uncertain freight and insurance costs, SteelOrbis learned from trade and industry circles on Wednesday, March 11.
Ex-India billet offers are quoted around $5/mt higher in the range of $460-465/mt FOB, but attempts to increase prices have been mainly due to rising costs and the rise of the local market, rather than any improvements in the export market.
The sources said that the US-Israeli attack on Iran has disrupted markets across the entire Middle East. But pushing higher volumes into other markets is challenging as highly volatile freight and insurance costs have caused wide differentials between FOB and CIF (cost, insurance, freight)-based rates, which are not acceptable to most buyers in the region.
Only one negotiation was discussed for 30,000 mt by an eastern Indian integrated mill to a trader at $450-455/mt FOB, but there has been no confirmation of a deal.
However, a section of market intermediaries said that local mills are not under any immediate compulsion to divert trade to Asian markets, adjusting pricing strategies, as the local market for semis has remained robust both in volumes and prices reflecting the bullish market for long products.
Local trade-level billet prices have surged INR 1,500/mt ($16/mt) to INR 45,500/mt ($494/mt) ex-Mumbai and are up INR 950/mt ($10/mt) to INR 42,200/mt ($459/mt) ex-Raipur in the central region.
