Ex-India billet prices have been largely maintained unchanged even as trading came to a halt with high prices unacceptable to buyers, while sellers supported by the steady uptrend in local sales have been unwilling to adjust overseas sales prices to push deals, SteelOrbis has learned from trade and industry circles.
While ex-India offer billet prices have been maintained at $500-510/mt FOB, buyers from Asia and the Gulf region are reported to be submitting bids in the range of $470-480/mt FOB, making deals unviable.
According to sources, even though most cheap ex-Russia and ex-Iran supplies were pulled out, the market still did not respond and the acceptable price for buyers did not see a rebound, indicating a further worsening of bearish sentiments.
“We do not find any sub-$500/mt FOB bids to be viable, particularly when global input prices like those of coking coal are rising again. Private mills have long pulled out of export sales, while government mills are reducing export allocations as indicated by the absence of any new export tenders over the past week,” an official at a government mill said.
Meanwhile, local billet prices have staged a smart rebound, easing pressures from bearish export markets on integrated mills. Merchant billet prices have gained INR 500/mt ($6/mt) to INR 49,700/mt ($609/mt) ex-Mumbai and on Thursday an even higher level of INR 50,000-50,500/mt was heard in Mumbai. Prices have surged INR 1,750/mt ($21/mt) to INR 49,000/mt ($600/mt) ex-Raipur in the central region.
$1 = INR 81.60