Ex-India billet prices and realizations have remained largely stable over the past week, but large mills have been seen to be less aggressive in floating fresh volumes for overseas sales in view of improved demand and slightly better prices in the local market, SteelOrbis learned from trade and industry circles on Wednesday, August 5.
Sources said that ex-India billet prices have been kept unchanged in the range of $450-460/mt FOB and new export deals have only showed marginal changes, indicating moderate buying interest, sensitive to any price increases.
Citing an example, the sources said that an export tender held by a government-run mill for 60,000 mt, which is now waiting to be closed by the end of the week, is expected to get bids at not above $455-460/mt FOB, which is in line with the bids in the previous tender held by the mill for 150 mm 3SP/4SP billets.
Similarly, an Indian IF-based producer closed a spot sale for 30,000 mt at $450-455/mt FOB, in line with the previous negotiations for IF material, the sources said, with the sales destination heard to be Southeast Asia, the Philippines in particular. However, the size of the billet is said to be 100 mm instead of the usual 150 mm.
“The expected realization price level from overseas sales is stable, but not improving. Hence, with domestic sales looking better with a faster offtake by re-rollers after the hardening of the long product market, more volumes of semis are offered locally. Large mills are taking a pause from the aggressive export offers seen earlier,” an Indian mill said.
Trade-level billet merchant sale prices have gained INR 500/mt ($5/mt) to INR 42,000/mt ($441/mt) ex-Mumbai and are up INR 650/mt ($7/mt) to INR 39,000/mt ($409/mt) ex-Raipur in the central region.
