India’s billet exports have remained almost inactive with buyers in China remaining out of the market and rare bids are coming at much lower levels than expected by suppliers, SteelOrbis learned from trade and industry circles on Wednesday, January 5.
Ex-India billet prices have stayed at $580-590/mt FOB, and this price is indicative as in fact offers from mills are close to $600/mt FOB, while buyers, especially those targeting the Chinese market, are bidding at around $550/mt FOB.
“Buyers from China inform us of unrealistic valuations of not more than $590-600/mt CFR, which is completely unacceptable to any local seller - not when local billet prices are showing signs of gaining strength on the back of the improved demand outlook and prices for rebar,” an official at Steel Authority of India (SAIL) said.
“There is no one in the market willing to accept anything more than $600/mt CFR and hence both sellers and buyers are off the market. The weak construction grade steel price in China does not make a revival in the short term imminent,” he said.
According to sources, a southern India-based government-run steel mill had an export tender for 30,000 mt of prime concast 150 mm billets, receiving the highest bid of $550/mt FOB. Sources said that this was too low for the seller and the auction was canceled.
Meanwhile, in the local market, billet prices have gained INR 500/mt ($7/mt) to INR 43,550-43,900/mt ($586-591/mt) ex-works amid higher demand from secondary rebar-producing mills, market sources said.
$1 = INR 74.30
