Ex-India tradable billet prices slump amid weakening local and Asian markets

Wednesday, 20 July 2022 16:55:35 (GMT+3)   |   Kolkata
       

The combination of a further weakening of prices in key destination markets and the local Indian market entering a new downtrend has put ex-India billet prices under pressure. Though limited trade activity was kept alive by modest buying interest from the Gulf region, deals were reported at low prices, SteelOrbis learned from trade and industry circles on Wednesday, July 20.

The recent buoyancy seen in the local Indian billet market has been reversing, with prices edging down from Tuesday onwards in most regional markets, putting pressure on mills. Most large producers have kept ex-India prices unchanged at $550-560/mt FOB, but actual small-volume deals were reported at a deep discount, taking new sales price to as low as $500-510/mt FOB, versus the previous $520/mt FOB.

Sources said that, not only expectations of a price recovery in key overseas markets have been belied, but buyers have been lowering bids with some customers in the Asian market seeking valuations of $520/mt on CFR basis.

They said that, while most local sellers have been unwilling to discount sales to match the widening bid-offer spreads, a few producers concluded deals with Gulf buyers where prices were significantly lower than offer levels but realizations were comparatively higher than in the Asian region.

“Local billet prices have reversed their sustained uptrend. There is a possibility of a correction after the sustained gains. But the much-expected recovery in price of semis in key markets like China which local sellers were expecting has been a disappointment,” a source at state-run steel producer Rashtriya Ispat Nigam Limited (RINL) said.

“For us current workable export prices of $500-520/mt FOB are not viable. Sales at these levels are largely linked to inventory and cost management of individual sellers. Hence, both volumes and the number of trades remain negligible,” he said.

An eastern India-based integrated steel mill reported a trade with a GCC-based buyer for 15,000 mt of concast billet at around $510-5120/mt FOB for September, market sources said.

Meanwhile, local merchant billet sales prices have edged down by an average of INR 500/mt ($6/mt) to INR 49,500/mt ($619/mt) ex-Mumbai and to INR 49,800/mt ($623/mt) ex-Raipur in the central regional market.

$1 = INR 80.00


Similar articles

No halt to downtrend in SE Asia’s import billet market, more traders going short

28 Mar | Longs and Billet

Ex-Asia billet offers become more affordable in Turkey, market slightly optimistic

27 Mar | Longs and Billet

Ex-India billet prices stable, but buyers try to push below $490/mt FOB

27 Mar | Longs and Billet

Ex-ASEAN billet sales continue at low prices, China turns negative again

26 Mar | Longs and Billet

Global View on Billet: Better sentiments, suppliers fail to achieve higher deal prices so far

22 Mar | Longs and Billet

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

22 Mar | Steel News

Import billet prices in SE Asia hit new low, trend reversal anticipated

21 Mar | Longs and Billet

Domestic billet sales livelier in Turkey, import price range narrows amid limited allocation

21 Mar | Longs and Billet

Ex-India billet sellers ready to accept lower prices to push sales amid weak local conditions

20 Mar | Longs and Billet

India’s RINL floats export tender for 30,000 mt billet for end-April shipment

20 Mar | Longs and Billet