Ex-India billet prices showed no change over the past week with the export market languishing with buyers across the Asian region maintaining a bearish outlook and few submitting low bids, while local sellers have been unwilling to adjust prices aggressively to push sales, anticipating upward momentum in domestic sales, SteelOrbis learned from trade and industry circles on Wednesday, September 10.
Ex-India billet prices have been kept unchanged at $430-440/mt FOB, but even stray bids at around $425/mt FOB have been considered unviable by local mills.
According to the sources, an export tender which closed on Tuesday, September 9, was heard to have received a highest bid of $415/mt FOB and most market participants claimed it was too low to be viable for any seller.
“There are no positive drivers noticeable in any of the key Asian destinations. In a negative cycle every buyer is expecting further declines before committing to a trade amid prolonged demand weakness. Pricing has lost much of its effectiveness in driving sales and hence most sellers are retreating and preferring to hold stocks till better days,” an Indian mill said.
“Also, the worst of a short-term downtrend is seen to be easing. Long product market conditions will improve as soon as the rainy season ends, and this will be reflected in the market for semis. Mills will increase captive consumption of semis and floating stock will reduce fresh impetus to billet prices,” he added.
Sources said that, even though gains in billet prices have been modest over the past week, the positive was that declines have been reversed with the tentative indication of a new uptrend emerging. Billet trade prices have gained INR 500/mt ($6/mt) to INT 40,100/mt ($455/mt) ex-Mumbai and are also up INR 500/mt ($6/mt) to INR 36,550/mt ($415/mt) ex-Raipur in the central region.
$1 = INR 88.11