Ex-India billet prices have remained at lower levels, but large local mills have generally refrained from submitting offers with pricing unlikely to drive sales amid the escalation in trade skirmishes. Sellers instead prefer to offer discounts locally, aiming to push sales successfully, SteelOrbis learned from trade and industry circles on Wednesday, April 16.
The reference Indian billet price in the export market has remained stable over the past week at $420/mt FOB. Sellers’ price ideas have been heard at $420-435/mt FOB, but mills have not been submitting official offers largely because even aggressive pricing would not be able to drive sales overseas at a time of negative sentiments amid trade wars and buyers continuously expecting deals at even lower prices.
“Buyers are expecting a market free-fall in the wake of global trade and tariff skirmishes. In our assessment, $420/mt FOB is a bottom. But for Indian sellers it is not an economically viable sales price and hence sellers are not submitting offers or are even pulling out low offers submitted earlier,” an Indian source said.
“Overseas, sellers can lower prices, but deals don’t work out. Locally, sellers can discount and push sales. Hence, the focus for sellers is very clear. The domestic market remains a safe haven,” the source said.
Meanwhile, in the local market, despite weaker trends emerging in long products, the movement of semis has remained positive with some regional producers dropping prices marginally to increase sales volumes. Billet trade prices have gained INR 100/mt ($1.50/mt) to INR 43,900/mt ($510/mt) ex-Mumbai, but have dropped INR 250/mt ($3/mt) to INR 41,350/mt ($481/mt) ex-Raipur in the central region.
$1 = INR 86.00