Ex-India billet prices have been nudged up by several large sellers over the past week, but deals have been held back by most of them, following the sharp surge in local prices and trade volumes in reaction to the robust recovery of finished steel long products, SteelOrbis has learned from trade and industry circles on Wednesday, December 3.
Sources said that ex-India billet prices are quoted in the range of $435-440/mt FOB, compared to $430-440/mt FOB a week ago, but no significant spot deals have been reported as private mills did not pursue the offers submitted, preferring to take advantage of the buoyant local market conditions.
One seller said it had a bid at $438/mt FOB, but in general trading has remained slow and most buyers are still targeting prices not above $430/mt FOB.
Local merchant billet trade prices have gained upward traction amid higher demand from secondary conversion mills and large integrated mills reducing open market sales to maximize internal conversion. This triggered a surge of INR 900/mt ($10/mt) to INR 39,400/mt ($438/mt) ex-Mumbai and an increase of INR 800/mt ($9/mt) to INR 36,700/mt ($408/mt) ex-Raipur in the central region.
“Prices are improving both on the export and local fronts. This is a strong positive after prolonged weak market conditions. But despite prices recovering in key destinations, buyers are still reconciling to higher price levels and hence actual deals may be slower than expected. Sellers are holding back export volumes expecting buyers’ resistance to ease in the coming days,” an official at an Indian mill said.
$1 = INR 89.85