Ex-India billet prices have been kept stable amid previous positive cues from key global destinations, but sellers have been unwilling to confirm trades as competition is still robust and any rebound is still tentative, SteelOrbis learned from trade and industry circles on Wednesday, May 21.
Ex-India billet prices have officially been kept stable at $425-435/mt FOB. There are rumours that some large mills have been able to conclude trades at the higher end of the range, in line with previous improvements in ex-China price of semis, but most market sources believe that this speculation does not reflect the weak market conditions.
The sources said that speculations were heard over a deal for delivery to the Middle East at $438/mt FOB, and some other Indian sellers have been ready to sell at $435/mt FOB. However, confirmation of these trades was not available as sellers have declined to divulge price or volume details citing “privileged information” largely because, even though the market is looking up, competition is still very strong.
“Moods have improved following the easing of trade tensions between the US and China. But we advise caution in claiming that a rebound is here. Our assessment is that overall trades at higher prices are still hard. This is one of the reasons why sellers are refusing to divulge final contract sale prices, fearing predatory pricing moves by competition. There is still a lot of volume floating in the market,” an Indian source said.
“Every market participant is waiting and watching for the market to consolidate higher. In Southeast Asia, buyers are still seeking discounts. The mood and outlook are positive but the market is yet to gain depth in terms of trade volumes at higher prices,” the source said.
Meanwhile, in the local market, the rebar market entering a new downcycle weighed in on trade prices of semis. Billet trade prices have edged down by INR 100/mt ($1/mt) to INR 42,800/mt ($500/mt) ex-Mumbai and have also lost INR 100/mt ($1/mt) to INR 40,600/mt ($474/mt) ex-Raipur in the central region.
$1 = INR 85.61
