Indian integrated steel mills have adjusted their billet export prices downwards, but have failed to find any positive response among buyers owing to weak demand in key overseas markets and low business activity owing to the holidays in China, SteelOrbis has learned. The continued weakening of local billet prices in India in response to weak rebar market conditions have added to this situation.
Market sources said that, responding to the low off-take of billets by secondary rebar producers in the local market, most Indian integrated mills have lowered billet export prices to the range of $415-420/mt FOB compared to the previous offers at $425-430 FOB. As SteelOrbis reported earlier, a week ago some rare deals were already signed at $415-420/mt CFR, but at the moment bids have declined further.
While buying interest in most Asian markets was very limited, the acceptable price differential between FOB and CFR basis prices had narrowed significantly, leading to offers of any significant volume not finding takers. According to the sources, while Chinese buyers were seeking acceptable valuations in the range of $420-430/mt on CFR basis, this did not result in deals as local Indian exporting mills have been unwilling to further adjust offers below the $415/mt mark on FOB basis so far.
Sources said that Jindal Steel and Power Limited (JSPL) has concluded a limited volume trade of estimated tonnage of 15,000 mt with Asian buyers for December delivery at a price of around $415/mt FOB.
Steel Authority of India Limited (SAIL), which had earlier announced a phased pull-out from exports to focus on increasing domestic supplies, has reported an export tender for 30,000 mt. Sources indicated the lowest targeted price of the supplier at $420/mt FOB, with bids at $410-415/mt FOB, though the tender’s results have not been disclosed so far.
The lack of commercial sales activity in the local market weakened billet prices for the second consecutive week, to around INR 29,000-29,500/mt ($395-401/mt) ex-stockyard, down by INR 500-1,000/mt ($7-14/mt) on average, market sources said
$1 = INR 73.50