Local Indian billet producers have continued to push up prices to offset higher costs of direct reduction iron (DRI), the primary raw material of secondary billet producers. Suppliers are still interested in the export market to keep inventories at low levels, SteelOrbis has learned.
Market sources said that local Indian billet (grade IS 2813 – 100 mm x 100 mm) prices have increased INR 350/mt ($5/mt) to INR 29,800/mt ($417/mt) ex-stockyard this week.
The sources said that the large integrated steel mills still have some volumes to offer to foreign customers. Rashtriya Ispat Nigam Limited (RINL), the state-run steel mill, has issued a notice offering 10,000 mt of billet for export sales on spot basis. Similarly, another state-run steel mill Steel Authority of India Limited (SAIL) has floated an export offer of 16,000 mt of billet to be shipped following competitive bidding to be completed over the next two weeks.
The sources said that an eastern India-based steel mill has concluded a deal for early March delivery of 15,000 mt of billet at around $434.50/mt FOB, but this deal was an exemption and the sales destination was not disclosed. It is “too high for Southeast Asia,” which is the largest market for Indian exporters, sources commented. If Indian mills try to sell to the Philippines or Indonesia, they would need to accept a price of about $420-425/mt FOB or lower, depending on freight costs.