Ex-India billet prices have been maintained unchanged over the past week, but negotiations have mainly been on pause as buyers in key destinations have stayed on the sidelines, rejecting offers, perceiving a new bottom to be still some distance away, with only a slim possibility of an immediate rebound, SteelOrbis has learned from trade and industry circles.
Sources said that, while large integrated mills continued to stay away from exports despite the slowdown in movement of semis in the local market, secondary mills were heard to be submitting offers in the unchanged range of $410-420/mt FOB, but no deals have been confirmed as buyers were deferring contracts, not anticipating any upside in the price line in the short term.
According to the sources, expectations of a market revival after the Labor Day holiday have been belied, but local sellers are still unwilling to adjust prices further as pricing is unlikely to drive sales.
“At a time when buyers are continuously expecting the market to settle lower week on week, the pricing strategy to trigger sales does not work. The post-holiday period did not see any restocking of semis in most Asian markets,” an Indian source said.
“Local stock movement of semis is slowing down in reaction to softening finished steel prices. But the local trade price is holding, largely owing to efficient inventory management by some large mills controlling the supply side,” he added.
Meanwhile, despite the slowdown in stock movement, local billet prices have remained at INR 42,300/mt ($511/mt) ex-Mumbai and are unchanged at INR 40,500/mt ($479/mt) ex-Raipur in the central region.
