Rise in Chinese steel prices has led to surge in imported billet offers to Bangladesh.
Bangladesh import market has witnessed a rise of USD 5-10/MT W-o-W in Chinese billet offered to them. Current offers for 150*150 mm Q235 grade billet from China are assessed at USD 270-275/MT, CFR Chittagong Port, which was last at USD 260-265/MT, CFR. Improvement in Chinese steel market last week is said to be the reason behind uptick in billet export offers. Billet prices in China rise by RMB 40/MT in a week’s time to RMB 1,560/MT (including VAT).
While, offers from Russia are assessed at around USD 280-290/MT, CFR Chittagong. But, no deals have been heard to be concluded.
Last tender of 150*150 mm billet from India was concluded at USD 262/MT, FoB India, which is equivalent to USD 272-275/MT, CFR Chittagong Port. Bangladesh imports around 1.5-2 MnT of billet annually.
Global Billet Offers as on 7 Jan’16
| Particular | Description | Offers |
| FOB China | 125*125 | USD 245/MT |
| FOB Black Sea | 125*125 | USD 255/MT |
| CFR Bangladesh | 125*125, China | USD 270/MT |
| CFR Bangladesh | 125*125, India | USD 275/MT |
| CFR Turkey | 125*125 | USD 270/MT |
| CFR South East Asia | 125*125 | USD 260/MT |
| Ex-Mumbai, India | 125*125 | INR 23,600/MT |
| Ex- Tanshang*, China | 150*150 | RMB 1,560/MT |
*Price includes VAT of 17%
Source: SteelMint Research
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