Indian billet export offers continue to maintain its upward momentum as offers further move up by USD 5-10/MT this week.
Current offers for 125*125mm billet being assessed at USD 450-455/MT FOB India main port against last offers of USD 440-445/MT FOB India.
According to market participants, a private steel mill was heard offering a sizeable quantity at around USD 455-460/MT FOB levels, although buying interest was gauged at around USD 450-455/MT FOB India for August delivery.
Participants believe that there is shortage of billets in global market and situation is likely to continue for some more time.
“Buyers are looking for immediate delivery as there are limited supplies in the market. There are several factors driving these prices up, specially no cargo from China. But buyers are little reluctant to pay higher prices now. ” said a global trader based in Singapore.
Demand for long steel exports also increase
Long steel exports have picked up from India specially due to narrowing gap between re-bar and wire rod. India is not a major exporter of re-bar but demand for it is picking up from south East Asian countries and US.
Last month Vizag steel had sold 10,000 MT re-bar cargo, which is expected to be shipped to US.
Steel Authority of India had sold 5,000 MT of wire rod to south East Asian country at around USD 470-480/MT FOB India.
A private mill is in talks of exporting 20,000-25,000 MT re-bar.
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