Ex-India billet prices have increased, with the market mood improving with some deals concluded at the higher end of the price range amid stronger buying interest from the Middle East, but overall export trade activity has been limited by large mills lowering overseas sales given the surging local long products market, SteelOrbis learned from trade and industry circles on Wednesday, April 17.
Ex-India billet prices have gained $5-10/mt over the past week, coming to $505-515/mt FOB from $500-505/mt FOB last week. A few deals have been reported at higher levels, following improved post-holiday inquiries from buyers in the Middle East.
According to the sources, a government mill which held a tender for 30,000 mt and had a deadline on Tuesday (April 16) received the highest bid of $515/mt FOB, compared to a $500/mt FOB bid received for a similar tonnage earlier in the month, boosting market sentiments. There was no confirmation about whether the mill sold at this price or not, but market sources believe that, even if this level looks a bit speculative, the spreading of the information about it in the market has made the market more positive.
An Odisha-based integrated mill has reported a trade for 30,000 mt at $508/mt FOB for the Middle East, while another western India-based mill has reported a trade for 15,000 mt at $505/mt FOB, the source said.
“There has been an uptick in buying interest from the Middle East after the holiday. Though Indian mills did not report any trade in Southeast Asia, sellers are maintaining a positive outlook taking their cue from improvements in ex-China prices,” a source at an Indian mill said.
“The significant trend seen over the week was local private mills reducing overseas sales in reaction to the surging rebar market and strong demand for merchant trade in billets by secondary mills in the local market. With local billet prices surging, mills are finding domestic sales realizations better than exports,” the source said.
In the local market, merchant billet prices are up INR 1,700/mt ($20/mt) to INR 45,200/mt ($541/mt) ex-Mumbai and have gained INR 1,600/mt ($19/mt) to INR 43,900/mt ($526/mt) ex-Raipur in the central region.
$1 = INR 83.50
