Morning Brief: Indian spot steel prices correct from their peak levels on limited buying interest
Indian spot billet prices corrected by about INR 900/t yesterday after hitting an all-time high. SteelMint's daily billet index closed at INR 43,200 ($590), ex-Raipur on limited trade volumes. Buyers were seen as being reluctant at these levels.
Chinese steel futures, which is the biggest factor that influences and sets the direction for the global markets, corrected by over 5% after the Chinese government expressed its concern over steeply rising prices. SHFE rebar futures Oct contract yesterday closed at RMB 5,641/t ($876), lower by $43 d-o-d. Chinese spot billet prices also corrected by RMB 150 ($23). At current domestic levels, the import parity prices of billet would be $760-765/t CFR China, which were $775-780/t CFR earlier this week.
The export trade may eventually slow down from India if volatility persists in Chinese futures, although Indian mills have sufficient bookings to take care of May and even mid-June.