Ex-India billet prices were relatively stable over the past week after early month price drops, but sellers led by government mills returned with more offers and new deals emerged, SteelOrbis learned from trade and industry circles on Wednesday, July 12.
Ex-India billet reference price has remained at $500-510/mt FOB this week. Despite low realizations, there were more sellers present in the market with a government-led mill floating a new export tender for 30,000 mt prime concast billet and slated to close next week and set a short-term trend in the local market. Some sources believe that the state-owned mill will target $520/mt FOB in its new tender.
A private mill reported a modest volume trade for 15,000 mt for the Middle East at $505/mt FOB and another sale to an Asian trader for 20,000 mt at $510/mt FOB, sources said.
“There is new pessimism in the market following cheaper ex-China offers available. Buyers are anticipating prices to fall further. Even though price increase expectations among Indian sellers have faded, they are not ready for another price adjustment just yet,” an official with a government mill said.
“We do not think any price below $510/mt FOB is viable for sellers. There are more offers for exports now largely owing to weak rebar prices and low merchant trade of billets in the local market,” he said.
In the local market, billet trade price lost INR 2,600/mt ($31/mt) at INR 42,800/mt ($518/mt) ex-Mumbai and down INR 2,300/mt ($28/mt) at INR 41,350/mt ($501/mt) ex-Raipur in central region.
$1= INR 82.60