Indian billet exporters have increased prices visibly on the back of sales in the Asian region, though the outlook has not been very good since the middle of this week due to lower business activity in China, which may prevent prices from recording further rises, SteelOrbis learned from trade and industry circles.
A few Indian exporters were able to receive bids or conclude deals at $630-640/mt FOB, up from the tradable level at $620-630/mt FOB last week. At the same time, some government-run mills had revised targets higher to as much as $670-680/mt FOB.
According to trade circles, there have been no reports in the market of government-run mills being successful in closing tenders at higher levels, and, though they have been optimistic, Asian customers are likely to reject any such high prices, when bids from China have already fallen to $700/mt CFR or below.
A southern India-based government steel mill reportedly received the highest bid under its export tender for 10,000 mt of 125 mm billet from a Singapore-based trader at around $635/mt FOB. Sources said that volume offered was kept on the lower side.
An Odisha-based seller reported a trade with an Asian buyer for 25,000-30,000 mt of 150 mm billet at a price of around $635-640/mt FOB, and this price corresponds to about $705-710/mt CFR Asia, including freight. A more modest volume trade of 10,000 mt was heard with a Gulf buyer at around $630/mt FOB, sources said.
Meanwhile, in the local Indian market, responding to the rising price of direct reduction iron (DRI) owing to coal shortages across the country, billet merchant sale prices have reached INR 46,300-46,500/mt ($614-616/mt) ex-works, up from INR 43,000-43,500/mt ($570-576/mt) ex-works two weeks ago.