Ex-India billet prices were kept stable for now, but trades fell silent on fresh wave of negative wave across Asia and buyers are expecting further decline, while local sellers pulled out, unwilling to push more discounted sales despite weak domestic market, SteelOrbis learned from trade and industry circles on Wednesday.
Ex-India billet prices remained unchanged for now at $490-502/mt FOB from the suppliers’ side, but most Asian buyers are preferring to sources from closer sources like China and ASEAN at almost similar offer levels, but at lower freight costs, indicating the “extreme price sensitive nature of the current market.”
Sources said that even though some bids were heard to be $5-10/mt lower than ex-India FOB price, local sellers were not willing to further adjust to push deals as margins at the fiscal year end was already under “severe pressures.”
Unconfirmed reports indicated that a government mill, which was scheduled to close an export tender for 30,000 mt prime concast biller today (March 27), had received the highest bid at $485/mt FOB and though not yet accepted nor any indication whether the tender would be extended, sources said that the below expectation bid spread negative mood across exporters with some mills in fact pulling out of exports.
“Ex-India billet prices are already at a floor. A lot of bids have emerged across Asian region at the $480-485/mt FOB range. These prices do not work for Indian mills. Local mills are preferring to hold back volumes from overseas sales even at inventory risks,” a source said.
“Overall market outlook for rebar, local and overseas, looks weak in the medium term. This will weigh on price of semis too. Domestic versus exports, in terms of margins will continue to remain a challenge for producers,” the source said.
Meanwhile in the local market, billet trade price showed a mixed trend, falling INR 100/mt ($1.20/mt) at INR 42,300/mt ($508/mt) ex-Mumbai and gaining INR 300/mt ($4/mt) at INR 39,800/mt ($478/mt) ex-Raipur in the central regional market.
Exchange rate: $1= INR 83.20
