Ex-India billet prices stable, sellers still hope for improvement amid stable local demand

Wednesday, 24 April 2024 16:14:22 (GMT+3)   |   Kolkata
       

Ex-India billet prices have remained stable although trade activity has moderated with private mills tending to hold back deals either amid expectations of improvements in prices or preferring to focus on the domestic market, SteelOrbis learned from trade and industry circles on Wednesday, April 24.

Ex-India billet offers have been submitted in the range of $500-520/mt FOB depending on the mill. The lower end of the range is represented by smaller mills, while the higher end is the target price of large mills and in one tender announced recently, although no trades have been confirmed at the higher levels.

The sources said that local private mills have been “testing market conditions overseas” by quoting higher prices, taking their cue from the hardening of ex-China prices in the Asian region. Also, the mills could reject lower offers against the backdrop of brisk merchant sales in the local market, riding on the back of robust long product prices.

One eastern region-based mill reported a spot export trade for 15,000 billet with an Asian trading firm at $502/mt FOB, with some sources believing this is IF material. Another mill reported a trade for 20,000 mt for the Middle East at $505/mt FOB, though this could not be confirmed by the time of publication. Market sources said that, with ASEAN mills targeting $500/mt FOB, some buyers from the Middle East, where freight from India is lower, may hold negotiations.

“Most Indian mills are not in a hurry to conclude export trades. They can well afford to wait for further price consolidations considering the strong performance of semis in the local market. Despite intermittent corrections in long products, the outlook remains strong and will provide support to local billet prices,” a source at a large Indian mill said.

“We are assessing the key export markets continuously. The outlook is good, but it will have to consolidate at $515-520/mt FOB levels to offer an incentive to sell overseas,” he added.

Meanwhile, in the local market, billet prices have been maintained at higher levels at INR 45,200/mt ($541/mt) ex-Mumbai and are unchanged at INR 43,900/mt ($526/mt) ex-Raipur in the central region.

$1 = INR 83.40


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