Ex-India billet trade activity has improved marginally with more sellers entering the market, but actual deals have been concluded at lower prices, indicating the deepening of the negative mood across Asian destinations and that the market is yet to bottom out, SteelOrbis learned from trade and industry circles on Wednesday, April 3.
Ex-India billet reference prices have eased from $485-495/mt FOB last week to $480-490/mt FOB as some sellers have agreed to provide discounts, seeing a further weakening of bids.
According to the sources, at least three to four private mills and a government-run producer have been active in pushing volumes overseas even though some of the largest mills have not wanted to sell at the current low levels.
A private mill reported a trade for 20,000 mt for delivery to Singapore for onward sale at $480/mt FOB, while a government mill received the highest bid at $482/mt FOB in its latest tender for 30,000 mt of 150 mm billet.
“Middle Eastern buyers are quiet for Ramadan. Asian buyers are looking for low levels, following fresh pressures emerging in China. Indian sellers are divided. Some are dropping prices accordingly to conclude sales, while the larger mills do not want to sell in the current conditions,” a source at one mill said.
“We see some more downside risks on the export front. We have some headroom in our own rolling capacities and do not need to sell overseas as the current workable price is not viable for us,” he added.
The larger mills’ rationale to stay out of exports was also backed by the revival in local sales prices, riding on the back of improvements seen in long products. Local merchant billet trade prices are up INR 600/mt ($7/mt) to INR 42,900/mt ($514/mt) ex-Mumbai and are up INR 1,150/mt ($14/mt) to INR 40,950/mt ($491/mt) ex-Raipur in the central region.
$1 = INR 83.40
