Indian billet exporters have been more active in sales abroad recently and, with the lack of response from Chinese buyers, they have focused on sales to Southeast Asia.
The latest tender for 18,000 mt of 125 mm billet from one of the major Indian state-owned producers was closed at $612/mt FOB late last week, SteelOrbis has learned. This is almost in line with the market expectations as during the week bids were heard at around $610/mt FOB. The material is going to be shipped to Southeast Asia, market sources said, though the final destination is not clear so far.
As the lot will be shipped from India’s Haldia port, the freight rate to Southeast Asia is unlikely to be below $75/mt, sources have said, while additional expenses will be $5-8/mt. This means that the final price on CFR Philippines basis is assessed at $695/mt CFR. “This is still the market price, not $700/mt CFR or above as suppliers want,” a source said.
In addition, a deal for Indian billet from one of the major private mills was done to Indonesia at $705-710/mt CFR last week for wire rod grade billet with special length, which translates to below $695-700/mt CFR for the base grade, sources have confirmed.
Also, another ex-India billet lot is heard to have been traded to Taiwan at $690/mt CFR last week.
As suppliers have failed to achieve higher prices for billet, the SteelOrbis reference price for Southeast Asia has declined by $5/mt to $690-700/mt CFR the Philippines from that announced late last week.