Indian billet exports have remained muted as government-run steel mills have continued to ask for higher prices, while private sellers have continued to stay away and not conclude deals, SteelOrbis learned from trade and industry circles on Thursday, February 24.
Ex-India billet prices are at $648-655/mt FOB, versus $648/mt FOB last week when the tender at this level was closed. But at the moment most suppliers are still asking above $660/mt FOB, while private producers are voicing $680-690/mt FOB, even though these levels have failed to attract any buyers.
“Indian mills are offering too high, not below $665-670/mt FOB,” a trader said. “Freights have gone up sharply. Today, crude is touching $100 a barrel for the first time since 2014,” he added, saying that prices for billets are expected to go up these days.
A government-run mill held an export tender for 10,000 mt of 65 mm billet on Wednesday, with indications that the highest bid was around $650-658/mt FOB.
An Odisha-based steel mill of a multi-location government-run steel producer has also reported a spot export offer of 20,000 mt of prime 150 mm billet with the bid prices heard to be at $655/mt FOB. But no confirmed deals have been reported so far.
“The weakening of the rebar market in China is having a negative impact on buying sentiments in the Asian region. Only government-run long product mills are active in pushing volumes overseas to counter the slow movement of rebar stocks and lower conversion rates,” a source at a state-owned steelmaker said.
“Buying from distant markets like MENA and the Gulf also took a pause over the past week, leading to a significant fall in trades and volumes. But the medium-term target of sellers of around $680-690/mt FOB remains intact,” the sources said.
Meanwhile, the fall in merchant trade in the local billet market has led to a softening of prices, down INR 500/mt ($7/mt) to INR 48,050/mt ($641/mt) ex-works in the eastern regional market. A sharper fall of around INR 1,000/mt ($14/mt) to INR 49,000/mt ($654/mt) was heard in the central regional market of Raipur, trade sources said.
$1 = INR 74.90
