Indian billet exports have lapsed into inactivity amid conflicting expectations for a price rebound in some destinations and tempered by lower bids for an export tender by a government mill, SteelOrbis has learned from trade and industry circles.
Ex-India billet prices have slipped to $470-480/mt FOB, down from $480-510/mt FOB last week. Though most local mills maintained their target price at $480-510/mt FOB, the latest bid in a state-run mill’s tender was at $470/mt FOB, reflecting the highest possible tradable level for now. Many Indian mills have been holding back trades expecting buyers to settle for prices above $500/mt FOB as the supply of cheap ex-Russia volumes in the Asian region was seen to be easing after some deals, and the overall mood has been indicating a possible price rebound.
An export tender for 30,000 mt of prime concast billet offered by a government mill received a highest bid of $470/mt FOB, far below the internal price target of the mill at $510/mt FOB, trade and industry sources said. Nevertheless, in previous weeks there was a very limited number of bids.
“There are expectations of improved prices in Asia and the Gulf, largely based on the easing of the flow of ex-Russia and ex-Iran material. But a contrarian assessment is that supply-side support alone will not be sufficient for a turnaround without commensurate support from improved price realizations of mills from finished steel,” an official at a government mill said.
“Our mill has increased export allocations of semis for the September-December period, but has deferred floating export tenders in August. It is watch and wait for market conditions to support bids above the $510/mt FOB valuation in the short term and the $530-540 FOB target in the medium term,” he said.
However, a source at an eastern region mill said that it concluded a trade for 20,000 mt with a Gulf-based trading firm, but declined to disclose the price. He said that the mill was not increasing export allocations of semis as captive demand for conversion to rebar was expected to rise in the coming months amid demand from the rise in construction activity.