Compared to a month ago, ex-India billet offers increased, peaked and are now showing signs of softening due to recent uncertainty in the direction of the domestic and global steel markets.
Sources inform SteelOrbis that export billet offers reached a peak of approximately $540/mt FOB India in mid-January, but began to soften over the past week. Billet export offers slipped $10/mt and are now reportedly at $530/mt FOB India.
The decline is attributed to mixed movements in the export billet market, but also the mixed movements in the Indian domestic billet market. A source noted, “While domestic billet prices rebounded slightly in major markets in the past day, it was only after about a 5-day consecutive decline that decreased prices by about INR 1,000/mt ($16/mt), or slightly more depending on region.”
Ex-India billet deals in the Southeast Asia region were reportedly concluded at $545/mt CFR Philippines in the past week. The same source added, “With highly competitive ex-Chinese billet export offers entering the region, Indian offers are likely to be under pressure for the remainder of the month.”
USD = INR 63.58 (Jan 24)