Ex-India billet prices have remained stable at low levels, but trade activity has fallen silent with sellers unwilling to continue pushing sales for slight margins, as SteelOrbis has learned from trade and industry circles.
Ex-India billet reference prices have been maintained at $480-495/mt FOB, as settled last week, due to the low demand situation, but sellers have not been willing to continue adjusting offers to push sales or even to agree to sell large volumes at this level.
Even government mills, receiving lower-than-expected bids in export tenders earlier in the month, are heard to be holding back fresh export offers until a revival in demand and prices is seen.
“Even in bearish market conditions, for most Indian mills the floor price now stands at $500/mt FOB. Pushing sales below that in a sustained manner jeopardizes operational viability. Hence, the halt in trade is normal and expected,” an official at a government mill said.
“Key markets like the Middle East are showing some signs of stability but prices are too low for sellers to become active. It is much more bearish in the Asian region where ex-China offers continue to move down. Indian mills are unwilling to get into a price war,” he said.
The withdrawal from exports by local mills is significant as it comes in the wake of further setbacks to merchant sales price in the local Indian market. Local billet prices have lost INR 400/mt ($5/mt) to INR 45,700/mt ($553/mt) ex-Mumbai and are down INR 350/mt ($4/mt) to INR 43,250/mt ($523/mt) ex-Raipur in the central region.
$1 = INR 82.70