Ex-India billet prices have nominally been kept unchanged even as most large Indian mills have almost exited the export markets, refraining from submitting offers, after prices hit the bottom in most main destinations, and with Indian sellers unwilling to adjusts prices further after the cuts in the previous week, SteelOrbis learned from trade and industry circles on Wednesday, November 20.
Sources said that ex-India billet offers are unchanged at $460-480/mt FOB, but these levels are considered notional, with mills led by government-run producers halting submission of offers since perceived workable prices and bids have been as low as $440-450/mt FOB following the surge in supplies led by sellers from China.
The SteelOrbis ex-India billet reference price has remained stable at $455-465/mt FOB.
Indian government-run mills, which have led exports of semis from the country, have not floated any export tenders for nearly a month and they are not heard to be negotiating any spot trades either.
“After dropping prices in the earlier week, Indian mills do not have any leeway to further face increased competitive challenges. Hence, sellers have halted submitting offers as they will not work in current conditions,” an Indian mill said.
“There is very aggressive selling ex-China in most Asian markets. Gulf buyers are also absent. The export market seems to have bottomed out. But the big question is whether there can be any rebound from the current levels. Not so considering the rising volumes flowing into the market,” the sources said.
Meanwhile in the local market, the billet trade market has also entered a new downtrend, with prices losing INR 500/mt ($6/mt) to INR 42,300/mt ($501/mt) ex-Mumbai and down INR 750/mt ($9/mt) to INR 39,200/mt ($464/mt) ex-Raipur in the central region.
$1 = INR 84.40
