Chinese domestic billet prices have again boosted up by RMB 140/MT in a day, hitting 20-month high level.
MS billet manufacturers in China have upsurged their offers by RMB 140/MT (USD 21.5/MT) just in a day. Prices have hit 20-month high level, which were last seen during the end of Aug’14.
Yesterday, billet prices in Chinese domestic market were evaluated at RMB 2,440/MT (USD 375/MT), which today surged to RMB 2,580/MT.
Lack of inventory levels with mill operators and pick up in seasonal demand have been continuously increasing billet prices in nation’s local market since the starting of this month.
On 1 Apr’16, billet prices in China’s domestic market were assessed at RMB 2,010/MT (USD 309/MT), which reached to RMB 2,580/MT (USD 297/MT) on 20 Apr’16 (today); jumped up by RMB 570/MT (USD 88/MT) in just 20 days.
Note: All above prices are including 17% VAT.
Chinese exporters raise billet offers
Chinese exporters raised billet offers on account of rising prices in domestic market. Market observed a mixed view on sudden rise in prices. Some exporters believe that these prices are not sustainable as fundamentals in China still remains weak.
On the other hand, exporters believe that low inventory position at Chinese mills may give support to prices.
Billet prices across the world noticed an increase.
1. Offers from CIS region are assessed at USD 390-400/MT, FoB.
2. Indian bloom tender may conclude at around USD 362/MT, FoB.
3. Chinese billet offers are at evaluated at around USD 390-400/MT, FoB.
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