Ex-India billet prices have been maintained unchanged amid silent market conditions and contradictory expectations of the market having bottomed out in key destinations against further downside risks as sellers have been willing to cut prices as too many volumes have been chasing too little demand, SteelOrbis has learned from trade and industry circles on Wednesday, December 4.
Sources said that ex-India billet offers are unchanged at $460-480/mt FOB but bids received by mills have been heard at below $450/mt FOB, prompting government-run mills, the more active among exporters of semis from the country, to continue to stay out of the market.
The sources said that at least two eastern India-based integrated mills which commenced spot sales negotiations for an aggregate offer volume of 40,000 mt, pulled out as even the lower price of $455/mt FOB was not accepted by buyers from the Asian region.
The reference price for ex-India billet has remained indicatively stable at $450-460/mt FOB
“Pressures of falling local demand and prices, coupled with the rise in inventories, are building up on large mills. But sellers are holding on to expectations that the global semis market may have bottomed out, drawing a cue from some stability in ex-China prices. However, the workable price is low,” an Indian supplier said.
“The ex-India price of around $460/mt FOB is still perceived to be too high in Southeast Asia. Buyers in the Middle East have also been quiet and have not been responding to offers for several weeks now. There are contradictory expectations among sellers. So, it is better to wait and watch,” the sources said.
Meanwhile, in the local market, billet trade prices have continued to seek lower levels as merchant trade volumes have been falling with secondary mills reducing off-take of semis from integrated mills in view of the fresh decline in rebar prices. Billet trade price have lost INR 700/mt ($8/mt) to INR 41,500/mt ($490/mt) ex-Mumbai and are down INR 400/mt ($5/mt) to INR 38,350/mt ($453/mt) ex-Raipur in the central region.
$1 = INR 84.70