Ex-India billet offer prices have remained unchanged over the past week and, even though bids were still low, local sellers have refrained from concluding deals expecting that the “worst may be over” and that a rebound is possible in the New Year, has Steel Orbis has learned from trade and industry circles.
Ex-India billet offers have been kept unchanged at the higher levels of $520-530/mt FOB and bids have been received in the range of $510-515/mt FOB. So, local private mills have stayed away from concluding deals, expecting higher prices to be seen over the next two to three weeks, supported by improvements in market conditions in China.
According to the sources, a government mill held an export tender for 30,000 mt of 150 mm material and, though details about closure of the tender are not available yet, indications are that the mill is targeting $530-535/mt FOB, significantly higher than possible bids.
The mood among sellers is more optimistic than earlier in the month and hence private mills have been holding back from deals.
“Local mills are not rushing to adjust prices and push sales, anticipating that the downturn has run its course. Mills across Asia are heard to be considering increasing prices. There is no point in rushing through spot sales now. Even a slight rise in inventories is an acceptable risk for better realizations later next month,” a source at an Indian mill said.
“In any case, billet movement and prices are slowing down in the local market. Even a modest uptick in workable export prices will offer support to producers. We expect a rise in exportable volumes,” a source said.
Meanwhile, in the local market, billet trade prices have inched lower, moving down by INR 400/mt ($5/mt) to INR 42,100/mt ($505/mt) ex-Mumbai and down INR 1,000/mt ($12/mt) to INR 39,450/mt ($474/mt) ex-Raipur in the central region in reaction to the slump in the rebar market.
$1 = INR 83.30
