Indian exporters have continued to submit offers, but deals have been rare with buyers still bidding at low levels, even seeing some stability around the corner. At the same time, local Indian sellers have remained under pressure from excess supplies and the continuing weakness of prices in the local market, even after the recent increase.
Ex-India prices have been stable at $475-490/mt FOB, but most firm bids confirmed in the market have been at levels lower by $5-7/mt or more.
Sources said that a government-run mill which held a tender for 30,000 mt on June 27 is reported to have received a highest bid of $465/mt FOB, which was far below the target price of the level of $490/mt FOB at the lowest.
One sale to a trading company was heard at $468/mt FOB, but this was not confirmed by the time of publication and could be only for IF billet, according to sources. Another government-run mill received a bid for 20,000 mt at $462/mt FOB, the sources said.
“Buyers in Southeast Asia and the Middle East are showing more interest, expecting some stability to emerge in the market. But, at the same time, they are unwilling to accept any price increase. On the sellers’ side, even though local prices have showed signs of a recovery, the gains seen over the past week are too little to expect any significant sustainable uptrend. Local supplies will remain on the higher side, and large mills will look at exports to keep stocks moving,” a source at an Indian producer said.
“Trade activity can rise but pricing will remain a challenge for local mills,” the source said.
Meanwhile, in the local market, merchant billet trade prices have showed gains attributed largely to the fact that they had fallen too sharply over a prolonged period and are now showing a marginal positive correction. Billet trade prices are up INR 500/mt ($6/mt) to INR 42,700/mt ($511/mt) ex-Mumbai and are up INR 1,200/mt ($14/mt) to INR 40,750/mt ($488/mt) ex-Raipur in the central region.
$1 = INR 83.50