Ex-India billet prices have increased gradually but mainly indicatively, as sellers were seen to be holding back offers and deals, prompted by expectations of the ability to push up prices in key overseas destinations and by surging local merchant sales prices, SteelOrbis learned from trade and industry circles on Wednesday, August 2.
Ex-India billet prices have moved up by $5/mt over the past week to $505-520/mt FOB. Amid indications that ex-China offers across the Asian region were improving, local Indian sellers led by government mills held back new offers, hoping to push up prices by at least $15-20/mt later in the month.
Sources said that government mills, which in recent months had been leaders in export sales, had not floated any fresh tenders but were pushing larger volumes into the local market. Billet merchant sales prices in the local market have surged INR 1,600/mt ($19/mt) to INR 43,700/mt ($531/mt) ex-Mumbai and are up INR 1,650/mt ($20/mt) to INR 41,800/mt ($508/mt) ex-Raipur in the central region.
“Overseas markets are improving but sales at higher levels are yet to materialize for local sellers. So, it is time to pause and wait for a price consolidation. The local market has been looking good over the past few days and hence sellers are having more options,” a source at an Indian mill said.
“Our assessment is that the workable price, at least in the Gulf region, will improve in late August and sellers will be better placed to submit higher offers. Asian prices will improve too but at a slower pace. Our new tenders both in terms of volumes and internal reserve prices will take these into consideration,” the source said.