Indian billet sellers have maintained a bullish outlook and pressed volumes for overseas sales during the past week, even though deal prices have been slightly below expectations, SteelOrbis learned from trade and industry circles on Wednesday, May 13.
Sources said ex-India billet offer prices are unchanged at levels of $480-490/mt FOB and, even though a few large-volume tender-based export bids were below expectations, large mills are optimistic of sales improving as the flow of cheaper material in key destinations has been minimal.
According to sources at Indian producers, export tenders aggregating 90,000 mt of prime concast billets were closed late last week. Two lots of 30,000 mt and 30,000-60,000 mt were sold at $477/mt FOB and $482/mt FOB, respectively. One of them (30,000 mt) was for Sri Lanka, while the other was taken by a trader for the GCC market, specifically for the UAE.
However, exports margins have been improving this week, following a large mill closing a deal on Monday for 30,000 mt at $485/mt FOB for delivery to Oman.
Another eastern India-based mill reported negotiations for 20,000 mt at $480/mt FOB, sources said.
The SteelOrbis ex-India billet reference price has settled at $477-485/mt FOB, with a midpoint at $481/mt FOB, up by $1/mt on average over the past week.
“Discounts are narrowing as buyers do not see an immediate price correction. There is a bullish mood in the market. This is a positive for large Indian mills, which are facing pressures from volumes and prices of semis in the local market, amid the softening of finished steel prices,” an official at an Indian mill said.
“The recovery we hear from reports from China can be expected to support some more gains. This will enable some balance in terms of the oversupply of semis in the local market,” he added.
Meanwhile, in the local market, billet merchant trade prices have continued to decline further as secondary mills have reduced purchases amid falling rebar prices. Billet trade prices have lost INR 1,000/mt ($10/mt) to INR 43,700/mt ($457/mt) ex-Mumbai and are down INR 1,400/mt ($15/mt) to INR 39,850/mt ($417/mt) ex-Raipur in the central regional market.
