Ex-India billet prices have stabilized with downside pressures easing slightly, but trade activity has remained muted with both buyers and sellers lacking confidence to strike deals amid differing outlooks, SteelOrbis learned from trade and industry circles on Wednesday, May 22.
The reference price for ex-India billet has increased by $5-10/mt on average over the past week to $505-510/mt FOB. Offers from large mills are still at $520-530/mt FOB, but no sub-$500/mt FOB offers have been heard unlike in earlier weeks. Still, the number of successful deals has remained very low amid the conflicting pulls of buyers expecting that sellers will not be able to sustain higher prices and local mills’ hopes of a better market for semis led by improved sentiments in China.
The sources said that, even while a large government mill, generally the most active exporter of semis, has remained out of the market, one large Odisha-based mill reported a spot sale for delivery to the Gulf at $505/mt FOB.
Another mill has been in negotiation for the sale of 20,000 mt in Asia, but further details are unknown.
“We still cannot be sure of any upturn in market conditions or an improvement in outlook. But most importantly, buyers are still lacking confidence in demand to accept higher prices. Buyers across Southeast Asia are still seeking offers below the $500/mt FOB mark. Indian sellers have stopped quoting at such levels only because of continued robust local sales,” a source from an Indian mill said.
“We will continue to focus on domestic sales of semis or increase captive consumption at our rolling mills and allocate for exports subject to further consolidation in overseas destinations,” he said.
Meanwhile, in the local market, billet trade prices are back on a new uptrend, gaining INR 700/mt ($8/mt) to INR 47,200/mt ($567/mt) ex-Mumbai and are up INR 200/mt ($2/mt) to INR 44,550/mt ($535/mt) ex-Raipur in the central region.
$1 = INR 83.30
