Indian billet export prices have showed tentative signs of a revival with one a government mill announcing a new tender. However, low demand in key destinations has prevented the market from being strongly optimistic, SteelOrbis has learned from trade and industry circles.
The new billet targets of Indian mills have been reported at $520-530/mt FOB, which is an improvement over $500-510/mt FOB a week ago, but, since demand has remained low, sellers were restricting their optimism over any immediate revival in overseas sales prospects.
It was pointed out that a government mill was back in the export market with an offer of 30,000 mt of billet, which was a positive sign, and the mill is speculated to have set an internal reserve price of $530/mt FOB and all eyes were on the closing of the tender and the achieved price set a tentative short-term trend.
An eastern India-based integrated mill has reported a trade for a relatively modest tonnage deal at $525/mt FOB and another sale to the Middle East market was rumored at $525-530/mt FOB, but neither of these deals have been confirmed by the time of publication. Major traders said that they have seen demand for ex-India billet mainly from Africa over the past month and only for small tonnages.
“The optimism has to be tempered by realism because higher price realizations have been for low volumes and in few deals. The key bearish element of low demand in China and the rest of Asia is still dominating sentiments among sellers,” an official at a private mill said.
“We do not think there is any strategic sense in increasing our export allocation of semis based on uncertain trends. Domestic sales will continue to remain the focus,” he said.
Meanwhile, in the local market billet trade prices have continued to seek higher levels, gaining INR 400/mt ($5/mt) to INR 50,100/mt ($611/mt) ex-Mumbai and up INR 300/mt ($4/mt) to INR 49,300/mt ($602/mt) ex-Raipur in the central region.
$1 = INR 81.89
