Ex-India billet prices have increased over the past week as sellers are waiting for the uptrend to continue in Asia in February after China comes back from its holiday, while inventory pressure is not so strong after the latest export deals and some improvements in demand in the local market, SteelOrbis has learned from trade and industry circles.
Major Indian mills have increased their target prices to $630/mt FOB minimum since late last week. Most offers have been heard at $630-650/mt FOB depending on the supplier. This indicates a sharp increase compared to the previous tradable levels of $609-615/mt FOB reported last week. The increase in prices by Indian mills has been supported by a very positive outlook for the Asian market after China’s return from the holiday and by rises in raw material prices, which have pushed costs up.
“There is strong optimism and an upside price potential once business activity resumes in China. The question among sellers now is by how much,” a source at a major Indian billet supplier said.
An eastern India-based integrated mill sold some tonnage to traders at $615/mt FOB and another contract was reported at the same level, with both deals done in late January and could be for final sale to the Middle East, according to sources.
A government-run steel producer reported a deal for higher manganese billets for March shipment at $620-630/mt FOB in the second half of January, but the identity of the buyer could not be ascertained from the market, and at the moment the seller would hardly provide $630/mt FOB for even base grade billets.
Meanwhile, riding on local rebar prices consolidating at higher levels in January, local billet prices gained INR 500/mt ($7/mt) for the second consecutive week to INR 46,050/mt ($617/mt) ex-works, while in the central Indian regional market of Raipur the merchant traded billet price is up to INR 47,600/mt ($664/mt) ex-warehouse, trade sources said.
$1 = INR 74.60
