Indian billet exporters led by government-run mills have been active in offering large volumes for overseas sales in the wake of depressed local market conditions and sales, SteelOrbis learned from trade and industry circles on Wednesday, August 21, while prices have inched up.
Ex-India billet reference prices have settled at $438-445/mt FOB, up from $435-440/mt FOB last week. This was due to the slight increase in bids from buyers, based on recently improved sentiments in China.
According to the sources, a government-run mill which held a 30,000 mt tender, is heard to have received a highest bid of $438/mt FOB, slightly higher than $435/mt FOB received in a previous tender for 150 mm billet.
A few IF mills have been in negotiations at $430-435/mt FOB.
It has been learned from trade circles that most large mills are seeing inventories of semis building up following the slowdown in offtake by secondary rolling mills in reaction to the sustained weak demand and the prices of finished steel. This is supported by the fact that a government-run mill has floated back-to-back export tenders aggregating 50,000 mt to close over the next week, indicating pressure to sell overseas to compensate for poor local market conditions.
Meanwhile, in the local market, billet trade prices have continued to seek lower levels with price down INR 100/mt ($1.19/mt) to INR 41,400/mt ($494/mt) ex-Mumbai and down INR 150/mt ($1.78/mt) to INR 39,000/mt ($465/mt) ex-Raipur in the central region.
$1 = INR 83.80
