Ex-India billet prices have increased over the past week and the deal price level has hit and exceeded $600/mt FOB. Nevertheless, a number of fresh bids from buyers has been reported at lower level and sentiments in the major sales destinations have worsened, which is signaling that ex-India billet prices have reached a peak for now.
An Indian state-owned producer has managed to close a tender for 30,000 mt of 150 mm billet at $600-605/mt FOB for April shipment. The price is $10/mt higher than last week’s tradable level of $590-595/mt FOB. The material sold in an auction to a trader is expected to be offered to the Turkish market, which even though softened a bit, is still in better shape than Asian and the Middle East outlets.
Despite higher price achieved in the recent tender, Indian private mills have been seen the market price level at $580-590/mt FOB and with very limited number of bids. Most of the mills had also nearly exhausted export allocation for semis for the current quarter and hence were “in no hurry to adjust prices to low demand in order to push deals,” a source said.
“Clearly there has been a lot of overestimations of demand in key markets in Asia and the Middle East,” an official with a mill said.
“Buyers in the Middle East are seeking valuations of around $620/mt CFR and those from Asia at $600-620/mt CFR. That too from very few that are in urgent need. Most other are preferring not to enter into deals now. Hence that local sellers do not have much exportable volumes at least till end March is not such a bad thing,” he said.
Meanwhile, with supplies from integrated mills tightening at the fiscal year end, local billet prices rebounded by INR 1,200/mt ($15/mt) at INR 49,200/mt ($606/mt) ex-Mumbai and up INR 400/mt ($5/mt) at INR 46,400/mt ($672/mt) ex-Raipur central region.
