India’s billet export activity has remained quiet during the past week, with bids at lower than expected by mills, but optimistic outlook and bullishness over achievable price was still there, SteelOrbis has learned from trade and industry circles.
The ex-India reference price is at $760-780/mt FOB this week, up by $10/mt on average compared to last week. The lower end of the range corresponds to the tradable price for Southeast Asia, given that the freight from India to South Asia for 30,000 mt of billets is $60/mt at least. The higher end of the range translates to the highest bids, Indian mills received, but most of them have been rejected by sellers, who are still waiting for prices to hit and exceed $800/mt FOB, anticipating buyers in the MENA region will aggressively look for alternatives to Russian and Ukrainian supplies.
Trade circles said that, with merchant sales price of billet in the local market surging INR 4,000/mt ($52/mt) to INR 64,000/mt ($839/mt) ex-Mumbai and INR 61,400/mt ($806/mt) ex-Rourkela, private mills have the option to hold back export volumes on offer until the price target of $800/mt FOB minimum becomes acceptable in distant emerging markets.
Sources said that a southern India-based government steel producer which held an export tender of 30,000 mt of prime 150 mm billet on March 23, is reported to have received a highest bid of around $780/mt FOB.
Another government-run steel company which floated an export tender for 20,000 mt of billet on behalf of its Odisha-based steel mills on March 22, received a highest bid of $775/mt FOB, trade circles said. But the target level of the supplier was above $800/mt FOB.
While private mills have largely stayed away from submitting spot offers, an Odisha-based mill has reported a trade for 20,000 mt to the Gulf at around $780/mt FOB, though it could not be confirmed by the time of publication.
Even IF-based mills have increased offers for billets to $800/mt FOB. “Indian billets are too expensive for Asian buyers,” a trader said.
