Ex-India billet prices have softened slightly with sellers reacting to a slump in local prices and sales volumes. Buyers in key destinations are becoming cautious expecting signs of a correction after the previous sustained uptrend, SteelOrbis learned from trade and industry circles on Wednesday, February 8.
Ex-India billet prices are down an average of $5/mt to $565-575/mt FOB. While private mills have pulled back from concluding deals as expectations of achieving deals at $600/mt FOB have been disappointed, at least one government mill has floated an export tender for 20,000 mt to close later this week and set a new price trend at a lower level.
Another steel producer concluded a spot sale of 20,000 mt with an Asian trading firm at $570/mt FOB, down from last week’s deal at $578/mt FOB.
At least two market participants have confirmed that an Odisha-based private mill submitted an offer at $610/mt FOB to an Asian buyer but pulled it back after receiving a lower bid in the range of $550-560/mt FOB for 30,000 mt.
“Pressures to push overseas sales volumes are building up in view of the fall in prices and volumes in local sales after the recent softening of the rebar prices of secondary mills,” an official at a private mill said.
“But there are mixed responses from sellers. Most prefer to hold back deals, anticipating that the softening of market conditions is still not a definitive bearish trend, while a few are marginally reducing prices. Respective sales are linked to each mill’s inventory situation and its ability to hold stocks,” he said.
Meanwhile, local billet prices have continued on a downtrend in view of lower bookings from the secondary sector. Billet prices are down INR 1,200/mt ($15/mt) to INR 49,300/mt ($596/mt) ex-Mumbai and have lost INR 1,100/mt ($13/mt) to INR 46,000/mt ($556/mt) ex-Raipur in the central region.
$1 = INR 82.70
