Indian billet exports had witnessed a strong volume surge over the previous week led by restocking demand just ahead of the Lunar New Year holiday in China, and so Indian mills were trying to push prices up further in the past week, though without success yet, SteelOrbis learned from trade and industry circles on Wednesday, January 19.
Sources citing industry estimates said that an aggregate 90,000 mt of billet export bookings were confirmed by local mills last week at $590-600/mt FOB on average.
But this week mills have been targeting $600-610/mt FOB at least. “SAIL is asking too high a price of $610-615/mt FOB,” a trader said, adding that the market is not ready for such a price yet.
“There is a lot of optimism over exports amid revived buying, particularly with buyers from China restocking ahead of the holidays next month. Government-run mills are the most aggressive sellers in the overseas market,” a source at state-run Rashtriya Ispat Nigam Limited (RINL) said.
“Rebar and wire rod prices are edging up slowly in China. The worst seems to be over and importers are more confident in concluding trades than early this month,” the source said.
Sources said that, though the export market has bounced back in terms of volumes, price gains have been limited and any potential upside will be determined by sustained buying interest after business picks up after the February 1 holidays in China.
A government-run steel mill which held a tender for 30,000 mt on January 18 reportedly received a highest bid at $600/mt FOB, sources said. But there has been no confirmation whether the tender has been finally closed or not.
The SteelOrbis reference price for ex-India billet is at $600/mt FOB, up by $5/mt over the week from $590-600/mt FOB.
Meanwhile, in the local billet market prices have continued to show gains riding on the back of the strong performance in the rebar market. Price have moved up INR 500/mt ($7/mt) to INR 45,050-45,500/mt ($607-613/mt) ex-works, sources in mills said.
$1 = INR 74.20
