Ex-India billet prices have increased over the past week, but more due to sellers testing if the market has bottomed out, though with limited deals reported at lower levels. Optimism over buyers’ rising interest has triggered hopes of at least a tentative reversal of bearish conditions, SteelOrbis has learned from trade and industry circles.
Ex-India billet offers have been quoted in the range of $510-530 FOB, with deals concluded at around $500-510/mt FOB, which was still an improvement over the reference prices of $480-495/mt FOB a week ago.
The sources said that an eastern region-based mill has reported a booking of 20,000 mt by a Chinese trader at around $500/mt FOB. This signals that ex-India prices have been regaining some competitiveness in the Asian market compared to other origins.
Another mill reported a trade at $505/mt FOB and the same seller also concluded a smaller deal for 15,000 mt with a Singapore-based Japanese trading firm at $510/mt FOB, the sources said.
However, it may be noted that government mills, the most active exporters of semis, are still out of the market and no tender-based offers have been heard from them over the past two weeks, but sources attributed this to the normal lag between changes in price trends and the sales activity of government producers.
“It is true that ex-India prices have increased but actual deals are still lower. But it is still a positive indication that buyers are being reconciled to higher prices compared to a week ago. The market may have bottomed out. This can only be vindicated if the trend is sustained for some more weeks,” an official at a government-run mill said.
Attempts to nudge up ex-India prices by local mills have been supported by the hardening of domestic merchant billet sales prices. Local billet prices are up INR 500/mt ($6/mt) to INR 46,200/mt ($559/mt) ex-Mumbai and up INR 1,000/mt ($12/mt) to INR 44,250/mt ($535/mt) ex-Raipur in the central region.
$1 = INR 82.70