The Indian billet export market has been silent over the past week in wake of sharp declines in bids with some heard below the $700/mt FOB mark and just one government mill placed an offer, while all private mills were unwilling to participate in a falling market, SteelOrbis learned from trade and industry circles on Wednesday, May 4.
Ex-India billet prices are in the range of $700-710/mt FOB, down by around $10/mt over the past week. This level reflects the tradable price, which is in between offers and bids. Some bids are heard as low as $670-690/mt FOB but with local private mills out of the market, no deals were reported.
A government mill floated an export tender for 30,000 mt of prime concast billet with bid closing date for May 6, but unconfirmed sources said that last date could be extended at the last hour in view of below expectation response from overseas buyers.
“The rapid spread of Covid-19 in China has aborted a revival in finished steel prices, spreading negative sentiments across the key markets. Hence there is no appetite among buyers for imported semis,” an official in an eastern India private steel mill said.
“A lot of ex-Russia material below the $700/mt FOB mark is available. This is putting a lot of pressure on Indian mills which are unable and unwilling to adjust the offer below $700/mt FOB. Exporters are ready to ride the downturn as far as semis export is concerned,” he said.
Meanwhile, in the local market, merchant sale price of billets continued to decline with secondary mills lowering rolling mill utilization levels in face of demand recession and rising energy costs. Merchant billet trade price was down INR 2,000/mt ($26/mt) at INR 59,000/mt ($771/mt) ex-Mumbai, industry sources said.
