Ex-India billet prices were largely kept stable by large local exporting mills, but low bids by most international buyers were considered unworkable for most suppliers, who also see some rebound in local billet prices, SteelOrbis learned from trade and industry circles on Wednesday, December 24.
Sources said that while ex-India billet offer prices were quoted in the range of $435-440/mt FOB, unchanged week-on-week, buyers across Southeast Asia and the Middle East were reported to be seeking discounted prices of $420-430/mt FOB.
It was pointed out that both buyers and sellers were maintaining vastly divergent outlook. Buyers in the Middle East were expecting a correction in the market and hence were seeking discounts, while sellers including large local Indian mills were unwilling to lower prices supported by revival in finished steel prices including long products, resulting in a stalemate in the market.
At least two in trade circles said that a spot sale negotiation for estimated volume of around 30,000 mt fell through with the buyer seeking a minimum $15/mt discount to the official offer of around $435/mt FOB.
“Neither buyer nor seller is willing to make any adjustments to find a workable price. Both are on wait and watch for a definitive trend to emerge. We do not find closing a trade at discount to current offers viable as we have strong local sales of semis and inventories are on the lower side also,” an official at Indian mill said.
Meanwhile, in the local market, merchant trade billet prices showed robust gains riding to strong performance of long products. Billet trade price surged INR 1,100.mt ($12/mt) at INR 40,700/mt ($454/mt) ex-Mumbai and also up INR 1,100/mt ($12/mt) at INR 37,700/mt ($420/mt) ex-Raipur in central region.
$1= INR 89.56