Ex-India billet trade activity has improved slightly over the past week, but the revived sales across Asian destinations have been at discounts, with buyers seeking deals at a bottom level, while local sellers have been forced to adjust prices in the wake of the sharp slide in domestic trade prices and rising inventories due to the impact of monsoon rains, SteelOrbis has learned from trade and industry circles.
Ex-India billet prices are down to a range of $415-425/mt FOB, compared to $425-435/mt FOB a week ago.
The sources said that, unlike the previous week, offers at the higher end of the price range are not working out. Buyers have been seeking “bottom prices” and local sellers have been forced to adjust prices and push exports in reaction to the downturn in local sales.
An eastern India-based mill has reported a sale at $420/mt FOB and another tonnage of 20,000 mt for delivery to the Middle East was heard $418/mt FOB, sources said.
A government-run mill is heard to have held a tender for 30,000 mt of billets with the highest bid received at $420/mt FOB.
Local sellers’ downward adjustments to ex-India prices are entirely attributable to the rapid slump in merchant trade volumes as well as in prices of semis, as secondary mills have been reducing offtake in view of sagging long product sales volumes and prices after the early onset of monsoon rains across the country and reports of flooding in some regions.
Local billet trade prices have lost INR 1,100/mt ($13/mt) to INR 41,700/mt ($487/mt) ex-Mumbai and are down INR 1,100/mt ($13/mt) to INR 39,500/mt ($461/mt) ex-Raipur in the central region.
$1 = INR 85.61