Ex-India billet trading still inactive as higher prices not accepted

Thursday, 08 September 2022 17:16:19 (GMT+3)   |   Kolkata
       

Indian billet exports have continued to remain inactive and attempts early in the week by mills to increase prices have failed and the tradable prices in Asia and the Gulf have remained low, with both buyers retreating and sellers pulling back offers, SteelOrbis has learned from trade and industry circles.

Ex-India billet offer prices have been pushed up to levels of $500-510/mt FOB, but no deals could be worked out as the emergence of cheaper or closer-shipment alternatives in most sales destinations prompted buyers to retreat.

Indian billet export prices have settled in the range of $460-490/mt FOB, which is slightly higher than $460-480/mt FOB seen last week. The price is indicative due to the absence of deals and the bearish outlook deepened across the Asian and Middle East regions, the sources said.

“Most key destination markets are reconciled to rising costs pushing up prices. But there is no demand to support such a cost push. Trade of semis is facing the impact of western mills either lowering output or closing down on the impact of energy costs. Mills in China are deferring all plans of increasing output and semis imports have all but come to a halt,” an official at a government mill said, pointing out that the resumption of higher-volume sales of ex-Iran and ex-ASEAN material aborted the attempts of sellers to push up prices.

“Indian sellers are insulated so far from the rise in energy costs. But other input costs, coal and iron ore, are on the rebound and there are limited options of using pricing to push deals,” he said.

Meanwhile, in the local market, billet trade prices have continued to weaken for the third consecutive week, triggering inventory pressures on mills.  Billet trade prices have lost INR 800/mt ($10/mt) to INR 49,700/mt ($623/mt) ex-Mumbai and are down by INR 500/mt ($6/mt) to INR 47,000-47,500/mt ($589-595/mt) ex-Raipur in the central region.

$1 = INR 79.80


Similar articles

Turkey’s Kardemir issues planned sales volumes for April-June

22 Mar | Steel News

Iran’s steel exports up 7.6 percent in first 11 months of Iranian year

20 Mar | Steel News

Ex-Turkey official merchant bar prices soften

01 Mar | Longs and Billet

Ex-China billet most competitive in SE Asian billet market amid lower futures prices

22 Feb | Longs and Billet

Italy’s Feralpi Group to meet construction sector’s carbon-reduced rebar demand

20 Feb | Steel News

Local Indian rebar trade prices improve slightly, but fundamentals still negative

20 Feb | Longs and Billet

India’s RINL floats export tender for 15,000 mt of rebar for April delivery

20 Feb | Longs and Billet

India’s RINL floats export tender for 30,000 mt of billet

20 Feb | Longs and Billet

China comes back from long holiday with mixed signals

19 Feb | Flats and Slab

Billet offers in SE Asia limited, fall of around $5-10/mt expected from next week

15 Feb | Longs and Billet