India’s billet export market activity has revived during the past week, with Asian buyers showing stronger interest in concluding deals, but exporters’ realizations have showed minimal improvements, SteelOrbis learned from trade and industry circles.
More Chinese buyers were active in the market since late last week, but price realizations from trades remained modest and sellers would have to “remain patient and let the market consolidate” before attempting to push up prices.
The ex-India billet price range, based on the latest trades and the workable price levels, is at $605-625/mt FOB, widening by $5/mt from both the lower and upper ends of the range.
“We are noticing some rebound in Chinese billet prices and an improved appetite for imports. However, buyers are still cautious and generally offers at $700/mt CFR valuation are still not finding acceptance,” an official at Steel Authority of India Limited (SAIL) said.
“Indian exporters will have to hold back any aggressive sales push until key Asian markets consolidate. Local sales of billet are improving on the back of strengthening rebar prices and demand for merchant sales of billets. Hence, sellers will not be willing to adjust prices too low to push volumes overseas. It is a wait-and-watch game between sellers and buyers now,” he added.
The latest tender by a state-owned mill was closed at $605/mt FOB last weekend, SteelOrbis confirmed, slightly lower than reported earlier, but the price is said to be reasonable, according to sources, as the lot of 30,000 mt of 150 mm billet was for 100 percent advanced payment.
Another Indian mill has still not closed its tender for 125 mm billet, but bids have been heard already at $610/mt FOB. The closing date of the auction is June 19 and the target price of the producer is about $620-625/mt FOB.
In addition, an Odisha-based private steel mill reported a deal for an estimated 25,000 mt for August shipment at around $625-630/mt FOB with a Singapore-based trading firm, though this could not be confirmed by the buying side by the time of publication. Another Maharashtra-based steel mill was also in the market, targeting $630/mt FOB.
Meanwhile, in the local Indian market, billet prices have continued to strengthen on the back of steady bookings by secondary mills, moving up INR 500/mt ($7/mt ) to INR 40,500-41,500/mt ($552-566/mt) ex-works, sources said.
$1 = INR 73.30
