Indian billet exporters, led by government-run steel mills, have stepped up to aggressively push higher volumes overseas, particularly to the Asian market, although bids from buyers have continued to be below target, SteelOrbis has learned from trade and industry circles.
Indian exporting mills are setting price targets of $630-635/mt FOB or higher, while the highest bids for 150 mm billets in the past week were only at $615-620/mt FOB.
The achievable price in the Asian market was set by bids received against export tenders of government-run mills, with highest bids averaging at around $615-620/mt FOB even though mills’ internal targets were around $630-635/mt FOB. As a result, for now the SteelOrbis reference price has so far remained stable from last week at $620-630/mt FOB.
State-run steel producer Rashtriya Ispat Nigam Limited (RINL) has been the most aggressive billet exporter over the past weeks, trade circles pointed out.
Against an export tender for 20,000 mt of 90 mm billet floated late last month with a deadline for submission of bids on October 5, the seller reportedly received a highest bid of around $610-615/mt FOB. The contract was not concluded, sources said, as the highest bid received from a Singapore trading firm with the final destination of China was considered too low by the seller.
A spot tender for 30,000 mt of 150 mm billet from the same seller was heard to have received a highest bid of $620/mt FOB from an Asian trading firm, at least $10/mt below the producer’s target.
“Even though bids are slightly below expectations, exporters of semis are very positive they will exceed the target prices set currently,” a source in RINL said.
“This is a time when business activity in China is low. Once it picks up after the holidays, higher restocking will enable prices to consolidate higher and the current price target of $630/mt FOB will be achievable. There will be a strong focus on imported semis in China as mills have lower steel outputs,” the source said.
Better sentiment in the local Indian market is also giving support to the mood as regards exports. Prices were up in northern India at Mandi Govindgarh by INR 1,000/mt ($13/mt) to INR 43,000-43,500/mt ($579-585) ex-warehouse.
