Ex-India billet prices have softened in new deals as some stronger demand was not supported by the acceptability of higher offer prices, with buyers having multiple sourcing opportunities, SteelOrbis has learned from trade and industry circles.
A few Indian mills have been targeting $525-530/mt FOB since late last week, but no confirmation was available of any trades concluded at higher levels. And this week, local private mills are reported to be submitting offers and disclosing deals in the range of $510-515/mt FOB, down by $5-10/mt over the past week.
According to sources, there was an improved response from the Middle East and North Africa, but buyers are seen to be “very price-sensitive” in view of the number of sellers active in the region and local mills have been willing to adjust prices to push deals.
The sources said that an Odisha-based mill reported a spot trade for 30,000 mt for delivery to the UAE at $510-515/mt FOB, while another western India-based integrated mill concluded a trade for 25,000 mt of prime concast billet for delivery to Egypt at around $515/mt FOB, the sources said.
Another eastern India-based mill reported a trade for 30,000 mt with a Hong Kong-based trading firm for onward sale at $510/mt FOB. This price translates to $535-540/mt CFR in the Southeast Asian market, in line with the latest tradable level for BF billets in the region.
“The strong positive mood among buyers globally seen early in the month has dissipated considerably now. Sellers’ attempts to achieve higher prices are not working. The demand is there but not at higher prices. Buyers think that the market will enter a correction soon and they are bargaining strongly,” a source at a large Indian mill said.
“The strong positive mood in the New Year prompted a number of sellers across Asia to increase export activity. This turned counter-productive as supply-side pressures increased, with buyers getting several alternative options, resisting price increases by sellers, and the mood is turning sombre now,” the source said.
However, maintaining a counterview, an official at the state-owned Rashtriya Ispat Nigam Limited (RINL) said that the mill has taken a pause from floating offers in January, expecting prices to start consolidating soon and, despite weak futures prices in China, the economic stimulus of the government would support the next up-cycle.
Meanwhile, in the local Indian market, billet trade prices have continued their recovery phase, gaining INR 300/mt ($4/mt) to INR 42,600/mt ($514/mt) ex-Mumbai and up INR 100/mt ($1.20) to INR 39,650/mt ($478/mt) ex-Raipur in the central region.
$1 = INR 82.90
