Ex-India billet prices have showed small declines as more sellers have entered exports after local prices slumped to a three-year low, while buyers across Southeast Asia and the Middle East have been averse to higher levels, taking cue from the weakness in China, SteelOrbis learned from trade and industry circles on Wednesday, February 7.
Ex-India billet offer prices have been quoted in the range of $515-520/mt FOB, down from $525/mt FOB at the lowest last week, as more mills have been heard to be submitting export offers. However, the actual trades were reported even lower, at $505-510/mt FOB, compared to $520-525/mt FOB a week ago.
An Odisha-based mill has reported a trade to an Asian trader at $505/mt FOB and another smaller tonnage was for delivery to the UAE at $510/mt FOB, the sources said.
A mill belonging to Steel Authority of India Limited (SAIL) located in the east held a tender for 20,000 mt with the highest bid received from a Hong Kong-based trading firm reported in the range of $505-510/mt FOB.
While not confirmed by the sellers, a private mill was heard in trade circles to have concluded a large-tonnage trade of 40,000 mt at a price as low as $500/mt FOB, with some traders maintaining that it was too low to be acceptable to any seller unless saddled with unviable inventory.
“Export trade was brisk last week because of more sellers turning active, though there was not so much a rise in buying interest. Naturally with more sellers and less buyers, prices declined. Attempts to increase prices as seen in earlier weeks fizzled out with local billet prices hitting a new bottom,” source at a private mill said.
“Importers are taking cue from low prices being quoted for ex-China and ex-Iran materials and are only considering bids if adjusted lower. Hence, local exporters’ wait for improved prices has just been extended,” the source said.
Meanwhile, reacting to the fresh downturn in long product prices, billet trade prices in the local market have also slumped, falling by INR 1,000/mt ($12/mt) to INR 41,800/mt ($503/mt) ex-Mumbai and down INR 800/mt ($10/mt) to INR 39,050/mt ($470/mt) ex-Raipur in the central region.
$1= INR 83.10
