Indian billet exporters have been inactive in offering this week amid a lack of buying interest from Asia and the alternative Gulf region, SteelOrbis has learned from trade and industry circles.
While the government mills which have been dominant in overseas sales are seen to be taking a pause, private mills have not been aggressive in overseas sales in view of the strong gains in local sales prices and low available export allocations.
Ex-India billet prices are at $750-770/mt FOB, down by $10/mt over the past week, but this price level is mainly nominal in the absence of new tender sales from government-run mills.
Local Indian billet prices have continued to move up, rising by INR 1,500/mt ($20/mt) over the past week to INR 65,500/mt ($863/mt) ex-Mumbai and up INR 1,000/mt ($13) to INR 62,400/mt ($822/mt) ex-Raipur
“With the ex-India price differential with local sales realizations widening sharply over the past two weeks, exporters are holding back large-volume sales overseas and prefer to wait for a further hardening of bids,” a source at a government-run mill said.
“Integrated mills are increasing outputs of captive rolling mills and also because of year-end considerations they do not have large export allocations available to leverage prices in export sales,” the source said.
An Odisha-based steel mill was heard to have concluded a trade for 20,000 mt with a Gulf based buyer at $760/mt FOB.
Another sale of 15,000 mt for end May shipment at $750-760/mt FOB was discussed in the market, but was not confirmed by the time of publication.
$1 = INR 75.90 (March 30)
