Ex-India billet prices have improved amid slightly higher bids compared to the previous week with buyers in key destinations in the Middle East and Southeast Asia anticipating that the market may have bottomed in the current cycle, SteelOrbis learned from trade and industry circles on Wednesday, September 11.
Ex-India billet prices have added $10/mt on average over the past week to $448-452/mt FOB, following some improvement in bids and sellers have still been interested in exports as the local market remains not so promising.
A government mill which held an export tender for 30,000 mt of 150 mm billet in the past week, received a highest bid at $449/mt FOB from a trading firm, an improvement over the $441/mt FOB bid received earlier in the month.
The mill was emboldened by the improved bid to float two back-to-back export tenders aggregating 50,000 mt, to be closed later this week.
Even private mills have increased their export offers, reacting to better bids, with an Odisha-based integrated mill reporting an offer for 20,000 mt at $448/mt FOB.
“The slight firmness seen in China seems to be having a positive contagion impact among buyers in key destinations. We cannot say that the market has reversed and is on an upturn, but sentiments are better and some buyers are at least accepting a reasonable increase in prices,” an Indian seller said.
“Some more clarity on the market direction may come after business activity resumes after the National Day holidays in China next month. Prices may suffer some setback as the market heads towards the holidays, at least in Southeast Asia,” the source said.
Meanwhile, the local market has continued its prolonged downtrend, with billet trade prices falling INR 400/mt ($5/mt) to INR 40,300/mt ($480/mt) ex-Mumbai and down INR 600/mt ($7/mt) to INR 37,450/mt ($446/mt) ex-Raipur in the central region.
$1 = INR 84.00