Weak demand in the Asian market has still been putting pressure on Indian billet exporters, with some new deals reported at the level below the latest tender, SteelOrbis has learned from trade and industry circles on Wednesday, December 15.
The ex-India billet price level has been settled at $580-590/mt FOB, down by $5/mt from last week. The highest end of the range corresponds to the tender results announced on Monday, while the lower end represents some low-volume deals from other suppliers seen lately.
According to the sources, with China staying away from imports, Indian government-run mills were heard to be concluding limited trades, while private mills were not allocating semis material for exports.
“With long products prices still weak in China, imports of semis are very low. The weakening of scrap prices is also putting pressure on semis and buyers are awaiting further declines. Indian mills are generally unwilling to push deals and sales in overseas markets are a factor of inventory management varying from mill to mill,” a source at Steel Authority of India Limited (SAIL) said.
“The rebound in billet prices in the local market is also easing the compulsion for overseas sales,” the sources said.
Market sources said that a government-run steel company concluded a deal for 30,000 mt of 150 mm billet at $590/mt FOB, as announced earlier this week. In addition, there was a rumor that an eastern Indian mill sold a modest tonnage of 15,000 mt at around $580/mt FOB for February shipment. The same mill was also heard to have concluded a small-volume trade for 12,000 mt with a Middle East-based buyer at $580-582/mt FOB.
Meanwhile in the local market, merchant sales price of billets gained ground on the back of improvements in rebar prices. Sources said that local billet prices are up INR 1,100/mt ($14/mt) to the range of INR 41,850- 42,100/mt ($552-555/mt) ex-works.
$1 = INR 75.80
