Ex-India billet offer prices have been kept unchanged with sellers unwilling to cut prices to match trends in key destinations and push sales and given the deepening of negative sentiments following reports of lower-than-expected bids received by a government mill, SteelOrbis learned from trade and industry circles on Wednesday, August 23.
Ex-India billet offers have been maintained at $505-520/mt FOB amid ongoing inactive market conditions, with mills almost absent exports and given rising local merchant demand following the strong performance in construction grade steel products by secondary mills. However, as the tradable level in Asia has moved down and as bids started to come at lower levels, the SteelOrbis reference price has decreased from $505-520/mt FOB to $500-510/mt FOB.
The mood among major exporters has worsened amid reports that the highest bid received by a government seller at a recently held tender was in the range of $480-490/mt FOB, below expectations of $510/mt FOB minimum and the seller did not confirm any sales contract.
“Despite reports of production cuts in China, the Asian region continues to remain under pressure from oversupply. Most of the rare bids received are below the $500/mt FOB mark. Indian sellers are not responding. The Gulf market too remains quiet,” a source at an Indian mill said.
“In the local market, merchant billet sales are volatile, but the demand outlook is very positive as rebar demand is getting stronger and will be reflected in the market for semis too,” they said.
Meanwhile, after a short correction phase, the local billet market has bounced back on strong demand from secondary mills at a time when integrated mills are also seen to be increasing captive conversion to rebar. Billet trade prices have surged INR 1,300/mt ($16/mt) to INR 44,600/mt ($537/mt) ex-Mumbai and are up INR 1,100/mt ($13/mt) to INR 42,800/mt ($515/mt) ex-Raipur in the central region.
$1 = INR 83.10