Ex-India billet prices have showed signs of slipping after several weeks of increases as sellers cut prices to revive sluggish sales and with buyers deferring trade in key Asian and Middle Eastern markets, SteelOrbis learned from trade and industry circles on Wednesday, March 22.
Ex-India tradable billet prices have been reported at around $580/mt FOB compared to $595-605/mt FOB last week, with at least two private mills heard to be offering discounts for all bookings above 20,000 mt under a single supply contract.
Sentiments have turned more bearish amid unconfirmed reports that an export offer for 30,000 mt floated by a government mill and slated to close on March 23 has received just three bids from buyers and an indication of lower-than-expected price realizations, while the closing date was not extended. The mill’s previous tender was closed at $600-605/mt FOB, as reported last week.
Finished steel demand has not been good in most markets and buyers in Asia and the Middle East have been deferring deals, while the local market in India has moved into a surplus zone, prompting integrated mills to cut domestic prices, at least two officials at private mills said.
There has been a rumor about a sale at the effective price of $565/mt FOB inclusive of a discount on the official offer to an Asian-based trading firm, though this could not be confirmed by the time of publication. Some market sources believe it could be for IF billet.
“The upward trajectory of ex-India billet prices has been checked by the softening of finished steel prices and the emergence of alternative cheaper options for semis. Clearly, all expectations of $600/mt FOB target have dissipated,” a source at an Indian integrated mill said.
“Exporting mills are adjusting to the tentative downturn as local sales have slowed down, reacting to the depressed rebar market and reviving overseas sales is important to check inventory build-up during the fiscal year-end,” sources said.
Meanwhile, integrated mills have dropped local merchant billet sales prices, leading to trade prices slumping by INR 1,700/mt ($21/mt) to INR 47,500/mt ($575/mt) ex-Mumbai and down INR 700/mt ($8/mt) to INR 45,700/mt ($553/mt) ex-Raipur in the central region.
$1 = INR 82.60