Chinese Billet Export Offers Fall on Low Demand

Lack of buyers and declining Chinese domestic prices have hit Chinese billet export offers.

In global market, Chinese billet (150*150 mm) export offers have fallen by USD 20/MT within last 4-5 days. Availability of limited buyers at higher rates and persistent fall in Chinese domestic billet prices are seems to be prime factors of fall in export offers.

On 7 Mar’16, Chinese domestic billet offers had hit 1-year high level of RMB 2,140/MT (USD 329/MT), which fell to just RMB 1,750/MT (USD 269/MT) on 15 Mar’16. Then again, market pick up the pace and reached at RMB 1,820/MT (USD 280/MT) today. Prices are ex-Tangshan, excluding 17% VAT.

Currently, 150*150 mm Q275 grade Chinese billet export offers are assessed at USD 300/MT, FoB China, which is equivalent to USD 320-330/MT, CFR South Asian countries and around USD 310-315/MT, CFR South East Asian countries.