Local Indian billet (grade IS2831 – 100 mm x 100 mm) prices have remained stable during the past week but with a negative bias in the absence of export deals during the past week and weakness in the rebar market, SteelOrbis has learned.
According to traders, no large integrated billet producers have been able to conclude export deals since early this month and this is triggering concerns over oversupply in the local market, particularly as domestic steel mills are unable to increase captive conversion of billets in view of the fresh downtrend in rebar prices and in demand in the market.
Local billet prices have remained at INR 27,900/mt ($389/mt) ex-works, and large producers are facing inventory buildups as secondary mills have also reduced their bookings in view of low margins from conversion.
Market sources said that at least two eastern India-based steel mills have quoted offers in the range of $375-385/mt FOB.
$1 = INR 71.70