Ex-India billet offer prices have remained stable at lower levels and, even though no improvements were reported from key destinations, more local sellers led by government-run mills have been active in pushing sales aggressively, providing some discounts, SteelOrbis has learned from trade and industry circles.
Ex-India offer billet prices have largely been maintained in the range of $495-500/mt FOB, but at least a few sales have been heard at as low as $485/mt FOB, indicting oversupply in the local market where prices had recovered but still remained close to a five-month low.
The sources said that, over the past week, there were offer volumes aggregating around 70,000 mt for combined spot and tender-based exports, while even private mills have been active even amid lower price realizations.
A government-run mill, which floated an export-based tender for 20,000 mt in the past week,is reported to have received the highest bid of $485/mt FOB, but the shipping destination has not yet been disclosed as the signing of supply contract is still pending.
According to at least two traders, an Odisha-based integrated mill reported a trade for 20,000 mt for June shipment to the Middle East at $505/mt FOB, but some market participants claimed the price to be at least $10/mt higher than the current achievable price in the region.
Another eastern region-based mill was rumored to have signed a deal for 30,000 mt with an Asian trading firm for onward sale at $483/mt FOB, the sources said, though this has not been confirmed by the time of publication.
“The market is better in terms of more deals being successful, but not in terms of prices. Buyers in Asia and the Middle East are getting good bargains, but not so for sellers who are having to overcome bearish local market conditions and continue to push overseas sales,” the mill said.
“There is a big slowdown in movement of construction grade steel in India. We have to push sales of semis aggressively to maintain crude steel output at higher levels to offset fixed costs. Pressures on export margins need to be partially compensated by increasing volumes in overseas sales,” he added.
Meanwhile, the sharp downtrend in merchant billet trade prices has been checked over the past week but they still remain close to the five-month low amid thin trade volumes. Billet trade prices have gained INR 2,800/mt ($34/mt) to INR 47,600/mt ($578/mt) ex-Mumbai and are up INR 1,550/mt ($19/mt) to INR 44,850/mt ($545/mt) ex-Raipur in the central region.
$1 = INR 82.30