Ex-India billet prices have softened following reverses in the market in China, while local sellers have still been active in pushing sales overseas in response to the lower trade volume of semis in the local market, SteelOrbis learned from trade and industry circles on Wednesday, September 4.
Ex-India billet prices are at $440/mt FOB, down by $10/mt over the past week. Though some mills are still indicating offers at $450/mt FOB, this has not been workable and does not reflect the current market situation.
A government mill which held an export tender for 30,000 mt on September 3 is reported to have received a highest bid at $441/mt FOB, down from the $452/mt FOB bid received in an export tender in late August.
An Odisha-based private mill has reported negotiations for 20,000 mt with an Asian trader at $438/mt FOB, the sources said.
“The optimism seen on the export front in terms of improvements in workable prices has faded during the past week in reaction to steel prices suffering fresh setbacks in China. But local sellers continue to push sales overseas even at slightly lower margins as domestic conditions, both in terms of price and volume are poor since secondary mills are facing challenges in the rebar market,” an official at a private mill said.
“Our assessment is that export offers will be maintained until a floor of around $430/mt FOB which would be acceptable to sellers. But exports will be reassessed in the case of further downside risks and the worsening of prices in China and Southeast Asia,” he said.
Meanwhile, in the local market, billet trade prices have continued to seek lower levels, losing INR 300/mt ($4/mt) to INR 40,700/mt ($485/mt) ex-Mumbai and down INR 550/mt ($7/mt) to INR 38,050/mt ($454/mt) ex-Raipur in the central region.
$1 = INR 83.90
