Ex-India billet prices have been kept stable during the past week, but moderate trade activity seen earlier has faded attributed to buyers taking a pause, while sellers have been maintaining an optimistic outlook, SteelOrbis learned from trade and industry circles on Wednesday, August 6.
Sources said that, while ex-India billet prices have been stable in the range of $440-450/mt FOB, but despite the steady flow of enquiries bids were not being translated into deals as in the previous week.
According to the sources, local large mills, which were aggressively submitting stable offers in the Middle East and Asian markets, were bullish going forward, claiming that the global rise in inputs costs would support higher prices and buying would resume shortly.
However, a section of market sources said that higher prices would trigger some Asian mills, which were on the sidelines, to return with large volumes for export and this rise on the supply side would limit the upside potential in workable prices and buyers were banking on such adjustments before rushing to commit transactions.
Citing an example, an Odisha-based integrated mill submitted a spot offer at a higher level of $450/mt FOB but negotiations were stalled at the behest of an Asian buyer which wanted talks to be deferred for a week.
Meanwhile, continued robust gains recorded in local billet trade prices have also supported exporting mills in holding the current ex-India price line and not to rush to adjust it in reaction to the temporary lull in buying. The local billet trade price has gained a healthy INR 900/mt ($10/mt) to INR 41,000/mt ($468/mt) ex-Mumbai and is up INR 400/mt ($5/mt) to INR 38,000/mt ($433/mt) ex-Raipur in the central region.
$1 = INR 87.70