Pressures mounted on ex-India billet prices and while few sellers were heard to have submitted discounted offers, it failed to trigger any trade activity with buyers in key Asian and Middle East destinations anticipating a bottom to be still some distance away, SteelOrbis learned from trade and industry circle on Wednesday, April 23.
Sources said that while most Tier I mills kept out of the export market, a few Tier II mills submitted offers, maintaining price in the range of $420-435/mt FOB, but they agreed to lower it to around $415/mt FOB net of discount, but still trade activity remained almost silent.
According to the sources, the large integrated mills were not looking at overseas sales, anticipating an increase in captive consumption and better local prices.
With supplies of semis flowing out of large mills for merchant sales tightening as a result, billet trade price in major trading hubs of Mumbai gained INR 400/mt ($5/mt) at INR 44,300/mt ($519/mt) and were stable at INR 41,350/mt ($485/mt) ex-Raipur in central region.
“The billet market is under increasing pressure across Asia and buyers are anticipating a bottom still some distance away and seeking very low bids. Local large Indian mills have exited exports while mid-sized mills offer discounts, but not enough to be able to drive any sales,” an Indian source said.
“With Indian domestic finished steel prices expected to remain firm in the short and medium term, there will be tight supplies of semis for merchant trade and hence sellers are unlikely to discount export offers aggressively. They can wait and watch global trends until it is a good time to enter,” the source said.
$1= INR 85.30