Ex-India billet prices have showed a mixed trend over the past week, with some mills keeping offers stable, while a few others attempting to nudge up prices, taking their cue from the hardening of the rebar market in some key Asian regions, SteelOrbis learned from trade and industry circles on Wednesday, July 16.
Sources said that, while a section of large mills maintained ex-India billet prices at $425-430/mt FOB, some Tier II mills are reported to have submitted higher offers in the range of $435-440/mt FOB.
However, deals at higher levels have not been confirmed in the market, while a few moderate-volume trades to the Middle East were reported at the lower end of the range.
According to the sources, a medium-scale mill reported a trade for 20,000 mt at $435/mt FOB to an undisclosed destination. Also, the same seller has reported a trade for 15,000 mt for delivery to Oman at a lower price of $425/mt FOB, the sources added. With reduced billet supply from Iran due to production difficulties and rather high other Asian offers, Indian mills have had advantage in the Middle East, especially if they can offer shipment before the end of September.
There has been a rumour about a sale at $435-440/mt FOB, but this has been denied by most market sources, as this level seems too high for both major sales destinations - the Middle East and Southeast Asia.
“The mood on the export front improved slightly on back of the hardening of rebar prices in key destinations. Trade activity too is much better. But deals at higher levels are still speculative as sellers are not confirming the price, and hence there are some doubts on whether any sustainable recovery can be expected,” an Indian mill said.
“Nonetheless, improvement in export trade activity is welcome amid steadily falling local billet prices. If ex-India activity sustains, it will offer scope to local mills to efficiently manage inventories of semis,” the source added.
Sources said that merchant trade billet prices have continued to suffer setbacks week on week and have lost INR 300/mt ($3/mt) to INR 38,700/mt ($451/mt) ex-Mumbai and are down INR 200/mt ($2/mt) to INR 36,500/mt ($425/mt) ex-Raipur in the central region.
$1 = INR 85.82