Prices for ex-India billet in the international market have declined over the past week due to still weak sentiments in China and the silence in the Middle East. So, in general, Indian mills have been focusing on their local market which is better both in terms of prices and volumes.
The ex-India billet reference price has settled at $425-435/mt FOB with the midpoint at $430/mt FOB, moving down by $5/mt on average over the past week. Only one Odisha-based mill reported a sale of 30,000 mt at $433/mt FOB, the sources said.
In view of long product prices showing a weak performance in China, there has been no appetite for higher-priced semis across the Asian region, while the Middle East market has remained quiet. This has prompted Indian prices to move down indicatively.
At the same time, other large mills were also heard to be staying away from overseas sales in view of the local market showing very positive trends both in terms of volumes and margin realisations.
“It is very clear. If higher prices are not acceptable on the export front, sellers will fall back on local sales offering good margins and volumes. There is no pressure to adjust ex-India pricing,” an Indian source said.
“Also, with the fiscal year just starting and mills having very little carry-over stocks of semis in their inventories, there is no need to push exports aggressively unless the price is good. We will hold back offers but with a positive outlook since slight improvements in steel futures contacts in China can trigger a revival in the physical market too. We will therefore be cautiously optimistic on exports,” the source said.
Meanwhile in the local market, billet trade prices continue to maintain positive upward momentum on reports of low inventories of semis at large integrated mills and rapid off-takes by re-rolling mills. Billet trade prices have gained INR 500/mt ($6/mt) to INR 43,800/mt ($510/mt) ex-Mumbai and are up INR 750/mt ($9/mt) to INR 42,100/mt ($490/mt) ex-Raipur in the central region.
$1 = INR 85.90
