Ex-India billet prices have showed wide variations over the past week, indicating a sharp divergence in market assessments and buyers’ reactions in key destinations, with some deals confirmed on the lower side, SteelOrbis learned from trade and industry circles on Wednesday, December 10.
Sources said that, while most offer prices have been kept unchanged at $435-440/mt FOB, some offers have showed wide variations ranging from $430/mt FOB on the lower side to $445/mt FOB on the higher side.
According to the sources, some large mills attempted to hike offers to levels of around $445/mt FOB early in the week but adjusted their offers downward subsequently to push through deals successfully, indicating that demand in most Asian destinations were not ready to absorb any price hikes amid continued resistance from buyers.
For example, an Odisha-based integrated mill reported a trade for 30,000 mt prime concast billet at $425-430/mt FOB, after revising its initial offer submitted at $440/mt FOB.
Similarly, another large mill concluded a trade at $425/mt FOB, against an offer of $435/mt FOB, the sources said.
“The mood in key markets is slightly more positive. But they are still not ready to accept any price increases. The downward adjustment to ex-India offers to successfully push sales is in tandem to trends in prices seen in China. Indian sellers will need to maintain price competitiveness on the export front instead of focusing on improving margins in today’s market conditions,” an official at an Indian mill said.
Meanwhile in the local market, billet trade prices have remained stable at INR 39,400/mt ($438/mt) ex-Mumbai, but have declined by INR 250/mt ($3/mt) to INR 36,450/mt ($405/mt) ex-Raipur in the central region.
