Through October and into mid-November, Indian export billet (90 mm x 90 mm) prices declined to approximately $460-465/mt FOB from levels of about $520-525/mt FOB India through September, but since late November export billet prices began to surge. According to sources, recent billet tenders of 25,000-30,000 mt offers are attracting bids of $505-507/mt FOB India. Present offers are reportedly at $515-520/mt FOB India. At time of report, a sale has not been confirmed at offer levels but the presence of demand above $505/mt FOB India gives some traders hope that billet export deals will be achieved prior to the end of the year. Some traders expect offers and trades will reach September levels in early 2018.
Additionally, sources report that major Indian mills are likely to increase prices on flat steel in early January due to the overall upswing in global expectations as well as increased raw material costs. An increase on domestic prices on finished steel would further support the upward trend of billet prices to the export market.