Ex-India billet prices have been kept largely unchanged by sellers. A number of suppliers were heard to be holding back offers anticipating some improvements in prices in the Asian market following stronger Chinese pricing and improved sentiments, SteelOrbis learned from trade and industry circles on Wednesday, July 26.
Ex-India billet prices are at $500-515/mt FOB, posting just a slight increase from $500-510/mt FOB seen as the tradable level last week. No deals have been confirmed over the past week and government mills did not float any export tenders. The lack of selling interest was attributed to expectations of a revival in workable prices after reports of ex-China prices firming up.
According to at least two in trade circles, an Odisha-based integrated mill submitted two spot offers of 20,000 mt each at $515/mt FOB but did not proceed to convert them into sales at bids at hardly above $500/mt FOB, interpreted as expectations of better price realizations from a “wait-and-watch’ policy.
“Market conditions are really slow in Asia and the Gulf. We are awaiting clearer pricing signals from these markets. Because, even though demand remains depressed, a few suppliers are attempting to increase prices. We shall wait and see the outcome before re-entering with offers,” a source at Jindal Steel and Power Limited said.
“The current workable prices are at around $520/mt on CFR basis in most Asian markets. We are not interested in such discounted sales. The domestic market offers better opportunities even if demand is slow,” he said.
Meanwhile, in the local market, billet trade prices have remained on a downtrend, losing INR 600/mt ($7/mt) to INR 42,100/mt ($514/mt) ex-Mumbai and down INR 950/mt ($12/mt) to INR 40,150/mt ($491/mt) ex-Raipur in the central region.
$1 = INR 81.80