Seeing lower bids in the import billet market in China, Indian mills have lowered their expectations for the next export sales. Two major Indian mills opened tenders for billet exports late last week, after unsuccessful auctions earlier in the week.
State-owned company RINL has been inviting bids for a tender of 30,000 mt of 150 mm from Thursday this week. The sources said that the company has been aiming for $615/mt FOB this time, down from a contract concluded at $622/mt FOB late last week and its target of $630/mt FOB earlier this week. “It was expected that they will retender,” a trader said. “I don't think anyone will accept this [$615/mt FOB],” another source said.
It would be hard for Indian mills to get prices above $605/mt FOB now, sources believe, as the tradable level for CFR prices in China has been at $705/mt CFR maximum lately, but most bids have already dropped to below $700/mt CFR.
Another Indian mill SAIL has failed to close its tender for 125 mm billet as not enough bids have been received, taking into account weak demand in the Philippines, where 125 mm billet is more popular. “Last night they released a blooms tender,” a trading source said, adding that the target will be China this time, even though bids there are lower.
SteelOrbis has lowered its reference price from the level of $620-625/mt FOB reported on Wednesday to $610-615/mt FOB on Friday, which is still up by $6/mt week on week.