Ex-India billet prices have been corrected down, following the sharp declines in China and another drop in bids from major customers, SteelOrbis learned from trade and industry circles on Wednesday, August 14.
The tradable level for ex-India billet has settled at $43-440/mt FOB in the face of cheaper alternatives available in key destinations, compared to $460-465/mt FOB a week ago. Mills were resisting to sell at the current low levels, though bids were lower and Indian producers still have allocation to sell due to the slow local market.
According to the sources, a greater number of domestic mills were aggressively offering volumes for export, but reports that producers have agreed to customers’ low bids are rare.
Sources said that a government mill which held an export tender for 20,000 mt on Tuesday (August 13) is reported to have received a highest bid of $435/mt FOB , significantly lower than the $458/mt FOB bid received in an export tender in an earlier week.
However, this did not deter the seller from floating a fresh tender for a larger volume of 30,000 mt to close later this week, reflecting the pressure to export amid oversupply and weak prices locally.
An Odisha-based private mill has reported a trade for 20,000 mt at $430-435/mt FOB, the sources said, though some market sources believe this is IF billet.
“The optimism over improved prices seen earlier in the month has been nipped in the bud by the sharp declines in ex-China prices and oversupply in key Asian and Middle Eastern destinations. The good mood among Indian sellers therefore was short-lived. But large mills are continuing having to push offers overseas, because of the glut of semis in the local market following the further weakening of rebar prices,” a source at an Indian mill said.
