Ex-India billet prices have been kept stable at lower levels over the past week in the absence of trade activity, following fresh pessimism in key destinations, coupled with negative sentiments in the local market limiting any aggressive pricing from sellers to push sales, SteelOrbis learned from trade and industry circles on Wednesday, September 3.
Ex-India billet offer prices have been kept unchanged at $430-440/mt FOB after large mills lowered the price line in the earlier week, but, with buyers across the Asian region ruling out any immediate demand improvement, offers received a negligible response, leading to quiet market conditions.
According to the sources, at least one large mill received a bid at $425/mt FOB, but it was considered too low by the seller, who was seeking a minimum of $435/mt FOB.
“There have been several false alarms on price improvement in key markets like China and Indonesia. Prices did gain but are failing to sustain in the face of an overall negative demand outlook across Asia. No one is willing to commit bookings unless the price is “good” but Indian sellers are unwilling to adjust prices again in the short term,” an Indian mill said.
“The local market for semis also remains in a negative zone. The sharp downtrend in prices seems to have been checked last week, but there is little headroom for a rise considering that inventories are building up at secondary mills,” he added.
The pace of the downturn in the local billet market eased with prices showing a mixed trend amid thin volume trades. Billet trade prices have gained INR 400/mt ($5/mt) to INR 39,600/mt ($450/mt) ex-Mumbai, but have lost ground by INR 550/mt ($6/mt) to INR 36,050/mt ($410/mt) ex-Raipur in the central region.
$1 = INR 88.10