Ex-India billet prices have largely been kept unchanged even though expectations of a rise in the key markets have faded amid spreading pessimism, and sellers have held back offers focusing on the local market, which despite a slight correction, has remained buoyant in terms of traded volumes, SteelOrbis learned from trade and industry circles on Wednesday, August 9.
Ex-India billet prices have been stable at $505-520/mt FOB but are “largely irrelevant” as most sellers led by government mills have remained out of the market and buyers too are not heard to be submitting bids, anticipating the declines across Asia to be contagious.
Sources said that, even though the local billet market was passing through a correction after a hectic rise earlier, trade volumes have remained “healthy” and another surge is likely as some of the larger mills are shut until the end of the month for maintenance works, leading to a tightening of supplies for merchant sales.
An Odisha-based mill is heard to have concluded a small tonnage trade with a trader at $500-505/mt FOB and, while no confirmation of the deal is available, at least two in trade circles said that a deep discount at a net price below the $500/mt FOB mark could not be ruled out.
“There has been a slight decline in local billet prices after the early surge. But prices are still good for integrated mills. Hence, sluggish exports are not that much of a concern. Private mills are not in a rush to push volumes overseas and can wait to float new offers,” a source from an Indian mill said.
“The strong rebar market and the expected rebound in demand in the busy season will support local billet prices,” he said.
After surging early in the month, the local billet markets have showed signs of cooling down. The biller price is marginally down INR 200/mt ($2/mt) to INR 43,500/mt ($525/mt) ex-Mumbai and is marginally up INR 150/mt ($1.80/mt) to INR 41,950/mt ($507/mt) ex-Raipur in the central region.
$1 = INR 82.80