Ex-India billet prices have been under pressure due to the slump in the local market and aggravated nervousness over the bearish conditions in China and its contagion impact in key destinations, SteelOrbis learned from trade and industry circles on Wednesday, June 12.
The ex-India reference billet price has settled at $490-500/mt FOB mainly after bids fell below the $500/mt FOB mark. But offers from India have also been corrected down, to $500-510/mt FOB, and at least one trade has even been rumored at $490/mt FOB, compared to $520-530/mt FOB a week ago.
Sources said that a government mill held an export tender for 30,000 mt with the final date on June 10 and that the highest received bid was at $480-485/mt FOB, but no official confirmation has been available on whether a sales contract was signed thereafter as most market sources believe the level in question is too low for the seller.
An Odisha-based private integrated mill has been in negotiation for 15,000 mt at $500/mt FOB, the sources said.
“Nervousness is spreading from the uncertainties in the construction sector in China. Large volumes are available for buyers below the $500/mt FOB mark [from China and ASEAN]. But even at lower prices, buyers from the Middle East are deferring bookings,” a source at a private mill said.
“Our assessment is that semis prices will still face some more downside risks. Considering the slump in the local trade levels in India, local sellers will need to continue to adjust prices to push sales overseas,” he said.
Meanwhile, with the rebar market firmly entering a downtrend, trade activity in semis has slowed down and prices have moved down INR 1,100/mt ($13/mt) to INR 45,400/mt ($544/mt) ex-Mumbai and have lost INR 1,300/mt ($16/mt) to INR 43,700/mt ($523/mt) ex-Raipur in the central region.
$1 = INR 83.50
