Ex-India billet prices have increased over the past week together with rises in local prices, though higher prices targeted by sellers have remained elusive.
The reference price for ex-India billet has settled at $522-528/mt FOB, versus $515-520/mt FOB last week. However, a number of offers have been quoted at higher levels of $540-550/mt FOB.
The sources said that a government-run mill received the highest bid of $528/mt FOB in its latest tender, up from $518/mt FOB heard last week.
More private mills are heard to have become active in overseas sales over the past week, with higher target prices of even $550/mt FOB from at least some sellers, even though actual deals have been concluded at lower levels, but an upbeat mood has persisted among exporting mills.
An Odisha-based integrated mill has reported a sale to the Asian market at $522/mt FOB.
“There is an improvement in demand in key markets. Prices may not be increasing as fast as sellers would like, but buyers are accepting offers at modestly higher levels. We assess prices to increase but at a slower pace,” a source at an Indian mill said.
“Despite the positive outlook, local sellers will have to be cautious so as to not be outpriced as the market is still sensitive. It will be an intermittent rise with activity likely to take a pause for year-end considerations in another week’s time,” the source said.
Meanwhile, in the local market, merchant sale trade prices have inched up in tandem with the rebar market, with prices gaining INR 400/mt ($5/mt) to INR 43,200/mt ($518/mt) ex-Mumbai and up INR 500/mt ($6/mt) to INR 40,950/mt ($491/mt) ex-Raipur in the central region.
$1 = INR 83.40