Ex-India billet prices were stable but with bids still considered too low, large mills continued to refrain from submitting offers and instead focus on revived local market, SteelOrbis learned from trade and industry circles on Wednesday.
While ex-India billet indicative offer prices were kept changed at $480-490/mt FOB, bids received were lower in the range of $450-460/mt FOB in most Asian regions and slight hardening of ex-China prices showing no impact of workable price resulting in almost inactive trades.
It was pointed out that large government mills, among the more aggressive overseas sellers of semis, had not submitted any offers or floated export tenders since late October.
“Local sellers were seeing export market bottomed out but such expectations have been belied. Ex-China prices were showing some improvements but not sufficient to lift overall global trade conditions and buyers still see more downside risks and are largely deferring trades or finding more competitive alternatives to ex-India offers,” an Indian source said.
“Local market for semis showed some improvement in demand and prices with secondary mills increasing offtake of semis from integrated mills. Thus, sellers of semis are not under pressure to adjust ex-India prices,” the source said.
The Indian export reference price was at $460/mt FOB this week versus $450-460/mt FOB last week.
The uptrend in local billet trade prices gained momentum on active trading. Billet trade price was up INR 700/mt ($8/mt) at INR 42,200/mt ($497/mt) ex-Mumbai and gained INR 200/mt ($2/mt) at INR 39,000/mt ($459/mt) ex-Raipur in the central region.
Exchange rate: $1= INR 84.90
