Ex-India billet prices were maintained after cuts earlier and relatively more sellers were heard to be active in submitting offers, anticipating market to have bottomed out and expectations of revival of buying yet no confirmed deals were reported, SteelOrbis learned from trade and industry circles on Wednesday, October 29.
Sources said that ex-India billet offers were kept stable at $420-430/mt FOB and more mills were active anticipating that downtrend in earlier week is finished and other major billet exporters like China increased offers.
However, over the past week in review, no deals were confirmed by any of these sellers. It was pointed out that even though offers in most key destinations were stable or increased, most buyers were still cautious as prices may have stabilized at current lows but any upside potential may be limited by sustained oversupply and absence of demand side positive drivers.
Buyers were awaiting for the price stability to sustain and signs of the prolonged downtrend to be reversing before committing new bookings.
“There is optimism among sellers but it is still too early to expect a rebound from current lows. Sellers optimism is not matched by buyers optimism as latter are still doubtful. Some deals have to be confirmed at current levels to support and drive the market on an improved trajectory. Middle East market is still showing sluggishness on the demand side and buyers have multiple import options,” a source from India, said.
