Some large Indian steel mills are heard to be attempting to nudge up billet export prices taking their cue from reports of improved futures prices in China and anticipating a rebound with the current down-cycle having run its course, although confirmed deals at higher levels are still awaited, SteelOrbis learned from trade and industry circles on Thursday, March 27.
The ex-India billet reference price stands at $420-450/mt FOB this week, up by $5/mt on average from last week. There has been a rumour about a trade at $450/mt FOB, but neither the buyer nor the seller has confirmed the trade, with market participants claiming that this was owing to the elevated competition from multiple sourcing options still available for buyers in Asia.
In contrast, confirmed deals are mostly reported lower and closer to the mid-point of the range. For example, an eastern India-based mill reported a sale of 20,000 mt for the Middle East at $430/mt FOB, while another seller claimed a sale of 30,000 mt at $435/mt FOB to an undisclosed destination, sources said.
“The better mood among sellers is backed by better trade activity. But whether sellers are successful in getting higher prices is still speculative. Most prices are not being confirmed by sellers as the market is still not very stable and also more sellers are still chasing fewer buyers,” an Indian source said.
“The market for semis can still go in either direction. We are still not clear on the impact of production cuts in China on prices and the volumes to flow into the supply chain. The present trend is largely based on the movement in futures contracts and not so much on fundamental physical trades,” the source added.
Meanwhile, in the local market, trade-level billet prices have reversed their downtrend to post healthy gains amid a revived offtake from secondary mills taking confidence from robust demand and prices for long products. Billet trade prices are up INR 600/mt ($7/mt) to INR 43,300/mt ($498/mt) ex-Mumbai and have gained INR, 1,000/mt ($12/mt) to INR 41,350/mt ($476/mt) ex-Raipur in the central region.
$1 = INR 86.90
