Chinese Billet Dominates Bangladesh Market

Bangladesh based re-rollers have increased their imports from China amid low offers.

Bangladesh is one of the prominent markets for Billet exporters. It imports around 0.15 million tonnes of billet every month. Though the country’s buying activity has slowed down during Ramadan, Chinese billet offers are frequently heard in the market.

Offers for Chinese billets are hovering at USD 315-320/MT CFR Chittagong, Bangladesh. Chinese billets are cheaper by at least USD 20-30/MT from any other country and hence, captured majority of market share in Bangladesh.

“Bangladesh is a net importer of billet. We generally import billets from India, Korea, Russia and China. We have increased our imports from China owing to lower prices, which are in the range of USD 315-320/MT, CIF Bangladesh. Offers from other countries are in the range of USD 340-360/MT, CIF Bangladesh. Though Chinese billets have chromium content, but most of the re-rollers are comfortable with that.” said a re-roller in Bangladesh.

In June 2015, Bangladesh government has increased import duty on billet by USD 25/MT (current duty is USD 90/MT) in order to promote steel smelting in the country. But on the other hand global prices have corrected over USD 45-50/MT since June.

(1 USD = 77.74 BDT)

Global Billet Prices

Billet prices in global market continue to remain under pressure. Russian mills have cut their offers to around USD 325/MT FOB black sea, which was 340/MT FOB in first week of July.

Export of Billet from India was recorded at 45,000 MT in July (till 20th). Out of which 35,500 MT has been exported to Ethopia (Africa). This cargo was heard to be booked by Tata International through Vizag Steel’s tender process, which was concluded at USD 400-405/MT FOB for smaller size (65*65mm).

In recent tender Vizag steel failed to get bids for 65*65mm billets, however 150*150mm size billets were concluded at USD 330-335/MT FOB Vizag port.