Chinese billet export offers continue to rise this week owing to tight supply and rising iron ore prices. However sustainability remains a question for the market.
Current offers for 150*150mm from China are assessed at around USD 270-275/MT FOB China, which is equivalent to USD 280-285/MT CFR South East Asia, 285-290/MT CFR Bangladesh.
Offers from black sea region continues to move in line with Chinese offers. Square billet offers assessed at USD 260/MT FOB Black sea, which was hovering at around USD 250/MT FOB last month.
No specific reason where sought for sudden rise in Chinese export offers. Industry experts believe that this peak construction period in China, which is giving support to prices in domestic market. Above that rising iron ore prices in spot market has also lent some support to export offers.
Global billet offers as on 04 Feb’16
| Particulars | Offers | W-o-W Change |
| FOB China | USD 270-275/MT | USD 10/MT |
| FOB India | USD 285/MT | USD 10-15/MT |
| FOB Black Sea | USD 265/MT | USD 10-15/MT |
| CFR Bangladesh (from China) | USD 285-290/MT | USD 10/MT |
| CFR Turkey | USD 275/MT | USD 5-10/MT |
| CFR Middle East | USD 275/MT | USD 10/MT |
| CFR South East Asia | USD 280-285/MT | USD 15/MT |
| Ex-Mumbai,India (Ex- Works, Tax Excluded) | INR 24,200/MT | INR 200/MT |
| Ex-Tangshan,China (Incld VAT of 17%) | RMB 1,780/MT | RMB 100/MT |
USD 1 = INR 67.07; RMB 6.5284 as on 04 Mar’16
Source: SteelMint Research
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