Indian billet exporters led by government-run mills have been active in offering semis overseas given the glut of supply in the local market, but lower bids have been coming lower amid the ex-China competition, SteelOrbis has learned from trade and industry circles.
Ex-India billet prices range at $450-460/mt FOB, compared to $460-470/mt FOB a week ago.
According to the sources, a government-run mill which held an export tender for 30,000 mt in the past week is reported to have received a highest bid of $448/mt FOB, below the $458/mt bid it had received for a similar export tonnage in the previous week.
The sources said that, despite the low bid, the government mill has followed up with a fresh export tender offer of 30,000 mt, reflecting the surplus in the domestic market and the pressure to push volumes overseas.
An Odisha-based private integrated mill has reported a trade for 20,000 mt at $450/mt FOB, but the destination was not disclosed by the seller.
Similarly, another eastern India-based mill has offered 20,000 mt to Asia with the workable level assessed at just slightly above $450/mt FOB.
“The demand for semis is very weak among secondary mills and inventories are piling up as long product sales are slowing down week on week, forcing large mills to push sales overseas at very aggressive prices,” a source at the Indian mill said.
“Buyers are negotiating very aggressively and sellers are facing a challenge on balancing compulsions of inventory management and protecting margins in a steadily weakening global market,” he said.
Meanwhile, in the local market, billet trade prices have bounced back, but the rise has been attributed to a “positive correction” after prices had been on a prolonged downtrend for several consecutive weeks and the gains are not expected to be sustained. Trade billet prices are up INR 1,000/mt ($12/mt) to INR 42,000/mt ($502/mt) ex-Mumbai and up INR 900/mt ($11/mt) to INR 39,650/mt ($473/mt) ex-Raipur in the central region.
$1 = INT 83.70