Ex-India billet prices have continued to consolidate at higher levels and, despite sustained strong demand in the key geographies of the Middle East, Turkey and select Asian countries, the number of trades concluded has been down largely owing to a combination of year-end considerations, a shortage of a semis exportable surplus amid rising conversion to finished steel, and sellers preferring to wait to achieve higher price targets, SteelOrbis has learned from trade and industry circles.
Ex-India billet prices have averaged at $590-595/mt FOB this week, compared to deals at $570-575/mt FOB last week and offers at $570-590/mt FOB. Sellers have not been keen to conclude deals at the lower prices available last week as export allocations of semis, particularly with integrated mills, have been extremely low as captive rolling mills are being operated at optimal levels.
Sources said that sellers’ price target of $600-620/mt FOB ‘is very close and achievable’ and an aggressive push on offers will emerge as soon as bookings for the end of April and early May commence.
The most aggressive seller earlier in the month has not floated any fresh export tenders over the past week and is possibly deferring them to achieve higher realizations from the current robust demand, once the new fiscal year kicks in.
According to trade circles, an Odisha-based private mill has reported a trade for 15,000 mt of prime concast billet at $592/mt FOB with a Singapore-based trading firm and another for 30,000 mt at $590/mt FOB with another Asian trading firm, speculated to be for onward sales to western destinations. Fresh offers from Asian traders for Indian origin billets to Turkey have been at $650/mt CFR or so.
A Maharashtra-based secondary mill has reported a trade for 15,000 mt to the Middle East at $587/mt FOB, the sources said.
Meanwhile, in the local Indian market, trade prices have continued to record gains in reaction to large integrated mills reducing merchant sales of semis as their own consumption is being increased. Billet trade prices are up INR 500/mt ($6/mt) to INR 48,500/mt ($586/mt) ex-Mumbai and up INR 1,000/mt $12/mt) to INR 46,500/mt ($562/mt) ex-Raipur in the central regional market.
$1 = INR 82.70
