Ex-India billet prices have softened slightly over the past week since, even though scrap prices in the global market have been on the rise and the mood in China is positive, the previously assessed billet prices from India were too high for the majority of customers.
Sources said that the number of sellers in the market have increased over the week, with private mills becoming more active, taking the lead from government-run steel companies. Ex-India billet tradable prices are in the range of $515-520/mt FOB, down by $5-10/mt over the past week.
A government-run mill which held an export tender for 30,000 mt of 150 mm billet is heard to have received the highest bid of $518/mt FOB, down from the targeted level of over $520/mt FOB.
Also, an Odisha-based integrated mill placed a spot offer of 20,000 mt with an estimated target level of $525/mt FOB.
“Expectations of improved prices are observed, but they are not very strong, and buyers are still price-sensitive. More local sellers are active in exports, also because the domestic market is in oversupply because of weak merchant demand for semis amid the impact of falling prices of construction grade finished steel,” an official from the Indian mill said.
“Our assessment is that the price will come under renewed pressure if cheaper ex-China offers emerge in the coming weeks. Indian sellers will need to continue with competitive discount sales in the short term,” he said.
Meanwhile, in the local market, billet trade price have showed signs of a marginal recovery, gaining INR 300/mt ($4/mt) to INR 42,800/mt ($514/mt) ex-Mumbai and up INR 750/mt ($9/mt) to INR 40,450/mt ($486/mt) ex-Raipur in the central region.
$1 = INR 83.30