Indian Induction Grade Billet Export Offers Drop Sharply

Indian Induction grade Billet export offers dropped rigorously on account of falling prices in Indian domestic market.

As per our assessment, the current export offers of 100*100mm induction grade billet are hovering at USD 380-385/MT ex-mill at Durgapur which is equivalent to USD 410/MT CPT Nepal, via road delivery. However, in the last week the same was traded at close to USD 425/MT, down by USD 15/MT on W-o-W basis.

As per our credible sources, buyers in Nepal are holding back major bookings of raw materials on assumption of further drop in price range. Thus, this has created selling pressure on billet manufacturers, specifically in eastern India - Durgapur & Odisha.

Following drop in Semis price range, eastern India wire rod export offers to Nepal have also come down and is currently evaluated at USD 460-465/MT as against last week at USD 475-480/MT, CPT Nepal, via road delivery.

Coming to large scale mills, the fresh offers are awaited for exports, however, the last deals were learned at USD 445/MT for Billet (blast furnace grade) & USD 525/MT for Wire rod, CPT Nepal, Raxul border.

The buyers in Nepal are assuming that latest offers of large scale mills to come down amid falling prices of secondary steel mills in India.

The local steel demand in Nepal is weak, thus buyers are not in a hurry to take position and are more inclined towards low cost raw materials to maintain input cost.

The domestic rebar prices in Nepal moved down by NPR 1,000/MT (USD 9) in last 7-10 days and are currently seen at around NPR 62,000/MT (INR 39,250/MT or USD 536/MT); ex-works, Birgunj/Bhairva, size 12mm & excluding local taxes.

source: SteelMint