Ex-India billet prices declined this week on year-end considerations and weak sentiments in China having a contagion effect across Asian destinations, SteelOrbis learned from trade and industry circles on Wednesday, while the downtrend was also seen in the local Indian market.
Ex-India billet offers were submitted in the range of $520-530/mt FOB, but the tradable levels and rare deals were largely at as low as $510-518/mt FOB, indicating $10-12/mt drop from the reference price of last week.
Market sources said that government mills continued to lead in terms of export activity with one seller floating a fresh export tender for 30,000 mt of 150 mm billet for February shipment, but expectations of bids are now low in the range of $510-515/mt FOB, compared to a highest bid heard at $528/mt FOB earlier in the month.
An Odisha based integrated mill reported a trade for 15,000 mt for Hong Kong trader at $512/mt FOB and another tonnage to a Singapore buyer for onward sales at $518/mt FOB, sources said.
“Taking year end consideration into account, there is still some buyers interest, but only at ‘competitive prices’. Sellers are not being able to secure an increase as expected earlier in the month. Winter months are traditionally bearish in terms of activity,” a source from the Indian mill said.
“Expectations of a price rebound post-holidays is also now looking bleak as mood in China is very bearish. Sellers will have to continue taking a conservative approach in overseas sales,” he said.
Meanwhile, in a sharp reversal of market conditions, local trade rebar prices slumped by INR 700/mt ($8/mt) at INR 42,500/mt ($511/mt) ex-Mumbai and lost INR 500/mt ($6/mt) at INR 40,450/mt ($486/mt) ex-Raipur in central region.
