Indian billet export prices have been maintained at higher levels during the past week, but buyers have largely stayed away, not accepting these valuations against the backdrop of lower bids from China and the not very bright outlook for the coming month, sources told SteelOrbis.
Billet prices in the domestic Indian market have surged during the past week in response to the hike in direct reduction iron (DRI) prices, while integrated steel mills were facing rising iron ore input costs and this prevented ex-India billet export prices from declining.
The reference deal prices level for ex-India billet have remained at last week’s level of $420-425/mt FOB. Market sources said that, without any pricing power to match lower valuations of buyers, most local exporters have maintained export offers at $430-435/mt FOB.
A state-owned producer has held a tender for billet exports, but the company has decided to postpone the closing period until November 5 due to the low number of bids submitted so far, SteelOrbis has learned.
“Buyers in Southeast Asia and China have retreated from the market. All buyers are waiting for a market correction before considering offers for ex-India billets,” an official at Jindal Steel and Power Limited said.
Another official at Steel Authority of India Limited (SAIL) said that local billet prices have been rising, which limited mills’ flexibility in the export market. Indian manufacturers have been aiming to improve value addition, increasing output of flat rolled products which are fetching good higher price in local sales.
According to traders, billet prices in the local market have surged by INR 1,200/mt ($16/mt) to around INR 30,200/mt ($410/mt) ex-stockyard.
$1 = INR 73.70