Indian mills have continued to refrain from submitting billet export offers and, even though there was cautious optimism over slight improvements in some Asian destinations, it did not result in any narrowing of the bid-offer gap, SteelOrbis learned from trade and industry circles.
Sources said that, government-run mills have continued to stay away from exports and, even though private mills have kept prices unchanged in the range of $480-490/mt FOB, they did not submit offers for any significant volumes.
The Indian billet export reference price has settled at $455-465/mt FOB, versus $440-460/mt FOB, but improved sentiments have not been sufficient for sellers to conclude deals as prices from other sellers - Asian and Iranian - have still been more attractive to buyers.
A section of exporters and traders maintain that prices may have bottomed out, but price hike attempts are not acceptable in most Asian destinations.
“The price increase that we are hearing of is really only an improvement in sentiments. We do not see an upward movement ahead of the Chinese market starting its holiday later this month. Hence, we prefer to be on the sidelines and to focus on the local market for semis,” an official at an Indian mill said.
Meanwhile, in the local market, billet trade prices have slumped by INR 600/mt ($7/mt) to INR 41,500/mt ($479/mt) ex-Mumbai and are down INR 400/mt ($5/mt) to INR 38,600/mt ($446/mt) ex-Raipur in the central region.
$1 = INR 86.60
