Chinese offers for commercial grade billet remain unchanged to Bangladesh market this week. In general, Bangladesh imports about 1.5-2 MnT of billet every year.
Current offers for 130*130 and 150*150 mm billet are assessed at USD 285-290/MT, CFR Chittagong port. However, some re-rollers claimed to have offers at USD 280/MT, CFR.
Offers from CIS region were assessed in the range of USD 290-300/MT, CFR but buyers prefer not to book from Russia and Ukraine due to longer delivery period.
Last export deal for Indian billet (150*150 mm) was concluded at USD 291/MT, FoB India. Cargo was heard to have sold to a Chittagong based steelmaker. Ocean freight from India to Bangladesh is less than USD 15/MT.
Bangladesh steelmakers prefer scrap over billet
Bangladesh steelmakers prefer imported scrap due to higher import duty on billet. In last annual budget, Bangladesh’s government increased import duty on billet from USD 65/MT to USD 95/MT in order to promote steel making in the country.
“It makes sense for us to import scrap as it attracts lower import duty”, said a steelmaker based in Bangladesh.
Global billet prices as on 21 Oct’15
|
Delivery |
Size/Grade | Prices |
Change |
| FoB China |
125*125, BF Grade |
265 | -5 |
| FoB India |
95*95, BF Grade |
350 | 0 |
| FoB Vizag, India |
150*150, BF Grade |
290 | 0 |
| FoB Black Sea |
125*125, BF Grade |
265 | -5 |
| CNF Turkey |
125*125, BF Grade |
270 | -10 |
| CNF Dubai |
125*125, BF Grade |
285 | 0 |
| CNF Bangladesh |
125*125, BF Grade |
280 | 0 |
Prices in USD/MT
Source: SteelMint Research
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