Ex-India billet prices have remained unchanged over the past week, but sellers have maintained a pause in pushing export volumes, being unwilling to adjusts prices to protect margins, which are also under pressure in the local market, SteelOrbis learned from trade and industry circles on Wednesday, June 17.
Sources said that ex-India billet nominal prices have been maintained at $470-480/mt FOB, but most local large mills have not been pushing offers aggressively, in order to avoid a situation of discounted sales both overseas and locally.
According to the sources, the tradable level for limited Asian buyers should be at $460/mt FOB at the highest, but no significant trade was confirmed as sellers have been unwilling to discount sales both in the domestic and export markets, as mills are facing rising costs of production and cannot afford low or negative margins on sales on both fronts.
The SteelOrbis reference price for ex-India billet has settled at $460-475/mt FOB, down by $2.5/mt on average over the past week due to low bids.
“Mills are caught between declining prices in the local market and buyers’ resistance overseas. It is a challenge to maintain a positive margin on sales under current local and overseas market conditions. Mills seem to be taking a call to prioritize local sales over exports,” an Indian source said.
“High coking coal prices are taking a toll on most producing countries. But consumers of semis are not accepting any increase in price. Overseas sales will have to wait for some price improvements,” he added.
Meanwhile, in the local market, billet trade prices have lost INR 200/mt ($2/mt) to INR 41,500/mt ($439/mt) ex-Mumbai and are down INR 100/mt ($1/mt) to INR 38,700/mt ($409/mt) ex-Raipur in the central regional market.
