Chinese Billet Export Offers Increase on Rising Demand for Immediate Delivery

Chinese billet export has continued to increase due to rising demand for immediate delivery and surge in imported iron ore prices in Chinese market.

Export offers have gone up by USD 20-25/MT in last one month. Current offers for 150*150 mm billet are assessed at around USD 260-265/MT, FoB China main port, which were hovering at USD 240/MT, FoB China last month.

Market sources claim that some small mills have defaulted on deliveries, which has increased inquires for ready delivery. Big and mid sized mills are charging premium in order to cover these default deliveries.

Chinese billet exports increased significantly in 2015, which created an imbalance in the market.

CIS billet prices also move up

Billet export offers from CIS region also moved in-line with rising Chinese prices. Current offers for square billet are assessed at USD 250-255/MT FoB Black Sea, which were USD 240/MT, FoB Black Sea a month back.

No fresh tender for Indian billet 

There is no fresh tender for Indian billet due to rising steel prices in domestic market. This is a result of recently imposed MIP (Minimum Import Price) by Indian government.

Last tender by SAIL had fetched bids in the range of USD 270-275/MT, FoB Hadlia Port, but the company did not conclude the deal owing to higher prices in domestic market.

Global billet offers as on 24 Feb’16

Source: SteelMint Research