Ex-India billet prices were under a big pressure from price slump and surplus inventories in the domestic market, while major competing exporters in key destinations were also dropping prices, SteelOrbis learned from trade and industry circles.
Officially Indian mills kept offers for billets stable at $500-510/mt FOB, but the tradable levels and some deals (including IF billet) slipped to only $480-490/mt FOB to Asian and the Middle East markets.
According to sources, market conditions improved in terms of volumes offered from India, but the buying conditions were difficult as buyers were interested in committing deals only at discounts and had multiple sourcing choices with more number of suppliers active in submitting offers.
But with domestic prices of semis in India slumping in tandem with weak rebar price and fall in trade volumes of billets, both private and government mills were seen to be increasing in exports to ease inventory pressures.
Only unconfirmed deal for the international trading company was heard at $480-485/mt FOB with some sources believing that it will be for the Asian market and government mills from India were not ready for such price. However, another deal for 20,000 mt was rumored for the Middle East at the same level.
Another Odisha based mill was heard offering 15,000 mt of bloom with the tradable level could be as low as $490/mt FOB for undisclosed destination, the sources said.
“There is a lot of competition both in terms of volume and price. But Indian mills are still a bit more aggressive than before to push sales overseas to compensate for slower movement of stocks in local merchant sales,” a source from Indian mill said.
“In our assessment, prices are at a floor for Indian mills now and any further fall will turn export margins negative. Hence, export sales are very critically balanced and further offers from local mills will remain a challenge,” the source said.
Meanwhile, the downslide continued in local billet merchant trades with price losing INR 1,400/mt ($17/mt) at INR 44,000/mt ($526/mt) ex-Mumbai and down INR 1,660/mt ($20/mt) at INR 42,050/mt ($503/mt) ex-Raipur in central region.
$1=INR 83.60