Indian billet exports have shown a mixed trend during the past week, with select producers attempting to push up prices, though trading activity has been muted by weak sentiments in China and buyers in key markets showing signs of resistance and capping valuations at $500-520/mt on CFR basis, SteelOrbis has learned on Wednesday, December 9.
Even though the rise in prices of billets in the local market in India has eased over the past week, export supplies have remained tight, and a few local producers have attempted to increase billet offers to $490-500/mt FOB, while some other exporters have offered at $480-490/mt FOB. The SteelOrbis reference price for ex-India billet has settled at $485-490/mt FOB, up by $5-10/mt from last week.
“I think that the market is taking a pause to reassess after rising too fast. Strong finished steel prices will provide support to semis. I do not think that the Chinese market is weakening, but just that buyers are slowing down imports. Demand still remains positive and the downside for ex-India billet prices is minimal,” an official with Jindal Steel and Power Limited said. “Indian integrated steel mills are well placed to handle a short-term pause in market activity as export allocations are kept low through the last quarter. Local merchant sales and demand are strong and exporters are unlikely to correct offers much,” he added.
There were reports about two sales by non-state-owned mills to the Asian market at $480-490/mt FOB, according to sources, but they were not confirmed from the buyer’s side.
Meanwhile, the pace of increase in local billet merchant sale prices eased slightly, with prices edging up INR 200/mt ($3/mt) to INR 36,000/mt ($490/mt) ex-stockyard, market sources said.
$1 = INR 73.50