1. Bangladesh steel re-rollers cut down billet import
2. Chinese billet offers show resistance
Bangladesh based re-rollers have slowed down billet import owing to high fluctuation in global prices, which rose sharply owing to sudden rise in Chinese domestic prices.
Global billet export offers had gone up by USD 60-70/MT in last few days, which have made buyers hesitant. Current offers for Chinese billet (150*150 mm) are assessed at USD 320-330/MT, CFR Chittagong, reported an importer based in Bangladesh. This is equivalent to USD 305-315/MT, FoB China.
Rumors of increase in import duty
Buyers have also slowed down import on rumors that government may increase import duty on billet. Bangladesh has differential duty system for billet imported from SAARC nation under SAFTA agreement.
“Current duty on billet is 7,500 Bangladeshi Taka (USD 90/MT), which may go up in order to promote domestic steel making. Also, the government may change differential duty for SAARC nations in order to give a level playing field for domestic manufacturers”, said an importer based in Dhaka, Bangladesh.
Chinese domestic billet prices fall
Chinese domestic billet offers have fallen this week due to low demand. Several steel mills have cut down their ex-work prices in order to increase their sales. Current offers for 150*150 mm billet are at RMB 1,770/MT (USD 272/MT), which had gone up to RMB 2,140/MT (USD 329/MT) on 7 Mar’16. Prices are including of 17% VAT.
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