The mood in the ex-India billet export market has improved significantly with more sellers becoming active and sales realizations better although lower than the aggressive price increases submitted by local mills, SteelOrbis learned from trade and industry circles on Wednesday, November 22.
Supported by the market in China gaining strength, ex-India billet offer prices have been hiked aggressively to $540-550/mt FOB, while the highest workable level has stayed near $525/mt FOB, which was, however, higher than the reference prices of $500-515/mt FOB a week ago.
The overall improvement in ex-India trade conditions has been reflected in a government mill closing an export tender for a smaller tonnage of 15,000 mt at the highest bid received at $524/mt FOB, but for 90 mm billets.
This week, RINL has opened another export tender for 30,000 mt of 150 mm billet for shipment by January 10. Bids can be submitted by November 28.
Similarly in the spot market, a western India-based integrated mill reported a trade for 30,000 mt at $528/mt FOB, while an eastern India-based mill reported a deal for the Middle East at $525/mt FOB, the sources said. These deals could not be confirmed by the time of publication and market sources believe that end-user bids in Asia on CFR basis are still low – at $520-530/mt CFR at the highest, but sentiments may push them up further in the near future.
“The export market for semis has definitely improved. But we think is that the improvement is owing to the fall in the number of active sellers and lower ex-China volumes. Some Indian sellers have rushed to aggressively increase offers. Some deals are working out at prices better than earlier in the month, but at a discount to prices being submitted by sellers. This is an indication that the improvement in price is supply-driven and not driven by a demand uptick,” an official at an Indian mill said.
“Most key markets in Asia and the Middle East remain sensitive and consolidation at higher levels is at some distance away. Sellers will need to be quick on their feet on pricing to achieve deals,” he said.
Meanwhile, in the local market, merchant trade billet prices have once again resumed a downtrend, also triggering large mills to increase offer volumes overseas. Local billet trade prices have moved down INR 700/mt ($8/mt) to INR 42,800/mt ($514/mt) ex-Mumbai and down INR 200/mt ($2/mt) to INR 41,050/mt ($493/mt) ex-Raipur in the central region.
$1 = INR 83.30