Ex-India billet prices have edged up even as mills have increased offer volumes and the local market has continued to improve, SteelOrbis learned from trade and industry circles on Wednesday, May 8.
Ex-India billet prices have increased to $510-515/mt FOB, up by $10-15/mt over the past week, mainly amid expectations for a market improvement and at least one deal being rumored, and some mills are now targeting even $520-530/mt FOB.
According to the sources, a number of large mills have entered the export market over the past week and, according to industry sources, an estimated aggregate of (spot plus tenders) 100,000-150,000 mt of prime concast billet were put up on offer for overseas sales. This was led by a government-run mill which floated back-to-back export tenders for a total of 60,000 mt, which will be closed by May 14.
Sources also said that a private mill reported closing a deal for 30,000 mt at $510/mt FOB, and, even though this has remained unconfirmed by the time of publication, this is an improvement on the highest bid at $505/mt FOB last week.
Another eastern India-based mill was in negotiation to the Middle East at $515/mt FOB for an estimated tonnage of around 25,000 mt, the sources said.
“The market outlook is better as long product prices are improving. However, the uptrend in prices of semis will be gradual. We are cautiously optimistic over export sales even though the increase in ex-India volumes on offer is possibly an unrealistic exuberance,” a source at the private mill said.
“Semis will find demand support as longs prices are improving. But it is still too early to be able to absorb the increasing offer volumes from Indian mills. We expect the situation to settle in the coming week,” the source said.
Several in trade circles expressed surprise that ex-India billet volumes have surged over the past week when domestic sales realizations continue on a sharp uptrend and are exceeding margins from overseas sales. For example, merchant trade billet prices have surged by INR 1,900/mt ($23/mt) to INR 48,200/mt ($577/mt) ex-Mumbai and have gained a hefty INR 1,050/mt ($13/mt) to INR 45,250/mt ($542/mt) ex-Raipur in the central region.
$1 = INR 83.20