Ex-India billet prices were maintained, however deal prices improved. Even though number of deals were on the lower side, market participants expected an uptrend to gain momentum after holidays in key destinations and sustained rebound seen in the local market, SteelOrbis learned from trade and industry circles on Thursday.
Ex-India billet prices increased by $15-20/mt over the week to $500-505/mt FOB as a more bullish outlook was supported by the fact that most deals were above the $500/mt FOB mark and bids below that levels were rejected by local exporting mills.
A government-run mill that closed an export tender for 30,000 mt earlier in the week, and it was reported that the highest bid was $500/mt FOB. Expectations for the next sales are at least $10/mt higher.
An Odisha-based mill reported a trade for 15,000 mt for Asia delivery at $502/mt FOB.
“The biggest positive is that deal prices are improving. Trade activity is still on the lower side. But there is a lot of optimism that conditions will improve after holidays in the Middle East and business activity resumes to the full,” a source from the Indian mill said.
“Our own target price is $510-520/mt FOB and this will be tested once business activity gains momentum. Also, the sustained uptrend in local billet prices riding on back of surging long products market will have an impact of export price levels,” the source said.
Meanwhile, local merchant billet trade prices continued to consolidate at higher levels with strong buying from secondary mills. Billet price gained INR 600/mt ($7/mt) at INR 43,500/mt ($523/mt) ex-Mumbai and up INR 1,350/mt ($16/mt ) at INR 42,300/mt ($508/mt) ex-Raipur in the central region.
$1= INR 83.30