Indian billet exports have remained near silent this week. Despite the sellers’ expectations, bids for ex-India billet have fallen sharply, mostly due to the slowdown in most key destinations and the availability of cheaper alternatives, SteelOrbis learned from trade and industry circles. Consequently, with gap between offers and bids having widened further, some local mills have decided to pull their billet offers back until the situation improves.
Accordingly, while ex-India billet prices have remained at $500-520/mt FOB, some sellers expect to see levels at $530-540/mt FOB. Meanwhile, weak sentiments and holiday season kicking in led to bids in range of $475-480/mt FOB with spot sales negotiations having dwindled almost to nothing.
While buyers in the Gulf region have reportedly put their acceptable ceiling at $510-520/mt CFR, Asian buyers have been ready to negotiate valuations at $530-540/mt CFR or slightly higher, however prices are unacceptable to Indian mills.
An Odisha based mill reported a trade for 25,000 mt of prime concast billet for February delivery to a Gulf based trading firm at $500/mt FOB against an initial offer speculated to have been submitted at $530/mt FOB, sources said.
“Even though the expected rebound in prices in Asia and Gulf has been belied, local sellers are preferring to wait and hold back deals for post holiday gains. Government mills are also holding back overseas tender sales for year end considerations,” an official in the government run mill Rashtriya Ispat Nigam Limited (RINL) said.
“The rise in cheaper ex-Russian billet availability has depressed sentiment and prices among Indian mills. Russian mills are very aggressive sellers in some Asian and Gulf markets putting supply side pressures during low demand holidays. We are assessing the situation and could revive new offers once a new trend emerges on resumption of full business activity in second week of January,” he said.
Meanwhile, the sharp rise in billet trade price in the local market and high trading volumes eased pressure on integrated mills. Local billet price surged by INR 1,800/mt ($21/mt) to INR 48,000/mt ($579/mt) ex-Mumbai and up INR 2,450/mt ($30/mt) at INR 46,450/mt ($560/mt) ex-Raipur in the central region.
$1= INR 82.90
