Indian billet export trade has improved over the past week and sellers have been aiming to increase prices in the next contracts amid signs of an uptrend globally, reports of the imminent return of buyers from China, and the surge in realizations in the local market, SteelOrbis has learned from trade and industry circles.
Ex-India billet prices are up to $590-600/mt FOB, up by $10/mt from the tradable level a week before.
According to the sources, major Indian state-run mill RINL booked at least 40,000 mt of 150 mm 3SP/4SP billet at $590-600/mt FOB to a trader this week, though some sources said that the total tonnage offered in the tender - 60,000 mt - was sold. Given that the freight from India to Asia is around $45-50/mt for 30,000 mt, the price corresponds to around $640-645/mt CFR without the trader’s margin, which is not workable at the moment. “I believe it could go to Egypt or somewhere else in the MENA region, as Asia is not there in terms of prices, at least for now,” a trader said.
Today, January 13, the same producer has opened another tender for 30,000 mt of billet exports with some sources saying that the seller is targeting $605/mt FOB.
“Prices have bottomed out. A new price trend will emerge in the second half of January or closer to the Chinese Lunar New Year. The hardening of futures in China is an indication of this. As for local sellers, the surge in sponge iron and billet prices in the local market is providing headroom for maintaining higher price offers and pulling back deep discounts on small-volume sales overseas,” a Mumbai-based steel distributor said.
Meanwhile, the uptrend in local billet prices has gained momentum, driven by the rise in sponge iron prices and the hardening of rebar prices, prompting secondary mills to increase merchant trades in billets. Local billet prices have surged INR 1000/mt($14/mt) to INR 44,550-44,900/mt($603-608/mt) ex-works, sources said.
