Ex-India billet prices have continued to seek lower levels due to cheaper alternatives and buyers across the Asian region turning cautious. At the same time, local producers have continued to offer stable volumes overseas in reaction to oversupply and lower realizations in the local market, SteelOrbis learned from trade and industry circles on Wednesday, February 15.
The average ex-India price is down to $560/mt FOB, compared to $565-575/mt FOB a week ago.
An Odisha-based producer is heard to have concluded an export deal on spot basis for April shipment at $560/mt FOB for Gulf delivery, the sources said.
Also, sources have said that a government run mill has received a very low bid for 20,000 mt of 90 mm billet at $552/mt FOB at the highest. This compares to a smaller tonnage sale of 15,000 mt reported by a private mill on spot basis at $558/mt FOB.
“The uptrend in key markets seen in earlier weeks has dissipated. The optimism of achieving sellers’ target of $600/mt FOB has definitely gone in the short term,” an official at a private mill said.
“Cheaper ex-Russia and ex-China competition is rising in the Asian region. The tradeable price is expected to fall further as there are very few positives in the market from the sellers' point of view. At the same time, oversupply and lower price realizations in domestic sales are prompting Indian mills to push higher volumes for exports, further dampening the price level,” he said.
Meanwhile, the local billet market has showed high volatility over the past week with prices surging early, but most gains were wiped off towards close of the week as traders and secondary processors retreated. Local billet prices have showed a net loss during the past week of INR 500/mt ($6/mt ) to INR 48,800/mt ($590/mt) ex-Mumbai and are down INR 300/mt ($4/mt) to INR 45,500/mt ($550/mt) ex-Raipur in the central region.
$1 = INR 82.70
