Ex-India billet prices have remained stable over the past week, but trades have remained stalled by buyers’ resistance to higher prices, while sellers have preferred to focus on local sales amid rising demand for semis from secondary mills and robust gains seen in the finished steel market, SteelOrbis learned from trade and industry circles on Wednesday, April 8.
Sources said that, while ex-India official billet offer prices have been maintained at $480-490/mt FOB, buyers in certain Asian markets have been seeking discounts to enable deals in the range of $480-490/mt CFR, but these prices have not been accepted by sellers.
According to sources, demand in Asian markets has appeared rather strong, though buyers are still very price-sensitive and have not been willing to accept higher levels, driven largely by higher logistical costs. And sellers have not been willing to offer discounts to partially offset such costs.
“Local sellers are under no compulsion to force discounted sales overseas as there is a shortage of semis and long product prices are surging in India. Also, producers are hamstrung in accepting deals at lower prices when domestic energy costs are very high,” a source at an Indian mill said.
“We are well positioned to wait and watch until acceptable prices align with demand in overseas markets,” he added.
Meanwhile, strong sales, rising prices and tight supplies and the steady hardening of long product prices have kept semis on a sharp uptrend. Billet trade prices have gained INR 800/mt ($9/mt) to INR 47,150/mt ($507/mt) ex-Mumbai and are up INR 1,000/mt ($11/mt ) to INR 42,800/mt ($461/mt) ex-Raipur in the central region.
