The negatives from China which have had an effect of contagion across Asia have forced the ex-India billet trade to lapse into near inactivity, with both buyers and sellers uncertain of the short-term trend, SteelOrbis learned from trade and industry circles on Wednesday, August 16.
Though ex-India billet prices have been maintained at $505-520/mt FOB, market participants have claimed the range to be unworkable, with local private mills refraining from even submitting offers.
The exception was a government-run mill which has floated an export tender for 30,000 mt of prime 150 mm billet to close on August 17 and bids received will serve as an indicator of the near trend.
According to an official with a private integrated mill, despite the slide in steel prices in China, Indian sellers remain out of export sales at any price below the $500/mt FOB mark. He said that, even after some correction in the local market, domestic sales realizations are better than resorting to deep discounting and pushing sales overseas.
“Indian mills are not desperate to export semis. They will continue to stay out of the market focusing on local sales and will wait and watch for the next cycle,” an Indian mill said.
Meanwhile, the local billet market remained under pressures of correction though the pace of decline has been moderate, enabling participants to maintain a positive outlook. Billet trade prices are down INR 200/mt ($2/mt) to INR 43,300/mt ($522/mt) ex-Mumbai and are down INR 250/mt ($2.50/mt) to INR 41,700/mt ($502/mt) ex-Raipur in the central region.
$1 = INR 83.00
