India’s billet export activity has remained subdued over the past week and, even though sellers dropped their price ideas, buyers across key destinations held back from bookings, having bearish expectations, SteelOrbis learned from trade and industry circles on Wednesday, April 13.
Ex-India billet prices are down $5/mt over the past week to $730-740/mt FOB in tandem with the sharp slump in local sales realizations. The price reflects the tradable level, while no fresh deals are reported for now, with several market participants claiming that large volumes of ex-Iran and ex-Russia material purchased over the past few weeks in Asia and the MENA region put pressure on prices.
According to sources, government-run mills, which are some of the most active in exports of semis, largely held back from putting volumes on offer for most of the week. Rashtriya Ispat Nigam Limited (RINL) broke the silence, floating an export tender for 30,000 mt early this week, which is due to close on April 19, with sources claiming a price is expected at above $700/mt FOB, indicating a bearish outlook.
“The mood is very bearish due to a combination of the large volumes on offer at competitive prices, but buyers are seeking still lower prices,” a source at RINL said.
“While there are no buyers in Asia, those in the MENA region are not responding to offers or are giving low bids not acceptable to sellers, and this is a reason for private local mills to stay out of exports,” he said.
Meanwhile, reacting to the sharp demand recession faced by construction grade steel long products, local billet prices have slumped by INR 3,000/mt ($39/mt) to INR 62,500/mt ($822/mt) ex-Mumbai and are down INR 4,000/mt ($53/mt) at INR 58,400/mt ($768/mt) ex-Raipur in the central regional market.
$1 = INR 76.00