Ex-India billet prices have declined as buyers in Asia and the Middle East have become cautious over the latest weakening in China, SteelOrbis has learned from trade and industry circles.
Ex-India billet prices have been quoted in the range of $515-525/mt FOB, compared to $520-530/mt reported last week. Both government and private mills are seen to be putting up volumes for export as the local market continues to show a rapid decline in terms of sales volumes.
A government-run mill has held a tender for 30,000 mt, with the highest bid at $525/mt FOB, slightly lower than the $530/mt FOB targeted by the seller. However, there has been no confirmation of whether the mill agreed to the price.
Another Odisha-based integrated mill has reported a spot sale of 15,000 mt at $518/mt FOB, the sources said.
“Trade activity is improving with more buyers and sellers active in the market, but the price is softening. There is still some weakness in the Asian market and buyers are still doubtful whether prices can consolidate upwards and hence are hesitant to accept any increase. We see the $530/mt FOB mark as the significant point of resistance for buyers and hence local sellers have had to adjust in the case of most of the successful trades,” an official at an Indian mill said.
Meanwhile, the sustained downtrend in local prices has been reversed slightly, with trade prices inching up by INR 200/mt ($2/mt) to INR 42,300/mt ($509/mt) ex-Mumbai and up INR 100/mt ($1/mt) to INR 39,550/mt ($476/mt) ex-Raipur in the central region, but several local traders are sceptical of a further consolidation as the gains have been on the back of very scarce commercial trading.
$1 = INR 83.10