Ex-India billet prices have improved slightly with mills remaining active in offering overseas and amid a few bids heard at a higher level after last week’s low. Also, Indian sellers have been supported by improved margins from the weakening of the local currency, SteelOrbis learned from trade and industry circles on Wednesday, August 7.
Ex-India billet prices are at $460-465/mt FOB, up by $5-10/mt over the past week as the mood was slightly better among sellers with bids in this range.
According to the sources, while government mills have been most active in offering volumes of semis for sale overseas, one mill holding an export tender for 30,000 mt of 150 mm billet this week has reported receiving a highest bid of $458/mt FOB, significantly higher than the $448/mt FOB received as the highest bid for a similar export tender late last month.
An Odisha-based private integrated mill has reported a deal for 20,000 mt at $460/mt FOB.
“These are too early days to forecast a turnaround in the export market. But the mood among sellers is definitely much better. It is a breath of fresh air amid the continuing decline in prices of semis and finished steel in the local market,” a source at an Indian mill said.
“The fall in value of the local currency against the US dollar also contributed to better margins for exporters in terms of exchange rate conversion. We hope that the exchange rate continues to support overseas sales. But, of course, at the same time, it makes imported raw material costlier and not many mills will be in a position to benefit from it,” the source said.
Meanwhile, in the local market the uptrend seen in the earlier week has been reversed with prices suffering fresh setbacks from low commercial buying. Billet trade prices have lost INR 500/mt ($6/mt) to INR 41,500/mt ($495/mt) ex-Mumbai and are down also by INR 500/mt ($6/mt) to INR 39,150/mt ($467/mt) ex-Raipur in the central region.
$1 = INR 83.90