Ex-India billet offer prices were maintained, but with more deals were signed at higher levels compared to last two weeks. This prompted more local mills to put up more offers for overseas sales on expectations of further gains, SteelOrbis learned from trade and industry circles on Wednesday.
Ex-India billet offers were submitted in the range of $525-535/mt FOB, but unlike earlier weeks, when acceptable price ranged $510-515/mt FOB, sellers were able to secure deals at $520-525/mt FOB.
The sentiments received a boost following a government mill concluding a spot sale of 20,000 mt at $525/mt FOB, an improvement over the highest bid of $510/mt FOB seen in last tender.
An Odisha based mill which earlier in the month turned down a bid at $510/mt FOB from an UAE buyer reported a trade at $528/mt FOB, though this was not confirmed by the time of publication and the price was assessed at the higher side.
Another eastern based mill reported a trade for 20,000 mt for Asian destination at $520/mt FOB, the sources added.
“Ex-India trade activity is improving but prices are only inching up. Local sellers are increasing offers on the Southeast Asian destination. The challenge is whether the uptrend will sustain as number of sellers are also rising and a lot of Iranian material being put up on offer,” a source from Indian mill said.
“We assess that the Middle East market will sustain. But sellers will only be able to push up offers if South Asia consolidates and futures in China gains,” the source said.
Meanwhile in the local market, billet trade price got on to a recovery gaining INR 200/mt ($2/mt) at INR 42,800/mt ($515/mt) ex-Mumbai and also up INR 200/mt ($2/mt) at INR 39,850/mt ($480/mt) ex-Raipur in the central region.
Exchange rate: $1=INR 83.10
