Indian integrated steel mills have been reluctant to sell billet in the export market at cheap prices, seeing an increase in domestic prices. At the same time, though demand from China and Southeast Asia still exists, buyers are mostly not ready to accept any visible price increases so far.
Most local Indian integrated steel mills are still assessing the market price level at $400-405/mt FOB and some of them have even increased offers to $410/mt FOB.
It has been pointed out that most integrated steel mills are already fully booked for September shipment and that their inventories are already at lower levels. For October bookings, producers will ask for higher prices, supported by sustained “hunger’ from Chinese buyers, sources said.
An export billet tender held by a state-owned Indian mill, opened last week, has not been closed so far, according to market participants. “A few days ago domestic prices in India jumped. And mills seems firm at a minimum of $400/mt FOB with advance payment,” a trader said.
Indian billet prices have increased by INR 700/mt ($9/mt) to INR 29,250/mt ($390/mt) ex-works in the eastern Indian regional market. Prices have moved up by INR 800/mt (10/mt) to INR 29,350/mt ($391/mt) ex-works in southern and western regional markets.
$1 = INR 75.00