Chinese billet export offers have gone up this week amid ongoing probe by Chinese government on re-bates availed by exporters on billets.
Chinese companies generally declare billet as square bar in order to avoid export duty on semi-finished carbon steel products and to claim an export tax rebate on alloy products.
Current offers for Q235, 150*150 mm billet are assessed at USD 295-305/MT, FoB Chinese port, which were USD 285-295/MT, FoB last week.
It is difficult to ascertain the seriousness of the probe as most of the exports are done by government owned trading houses. But for time being supply is limited in the market and buyers are looking for alternative supplies.
CIS region
With absence of Chinese supplies in the market, CIS based suppliers heard to have raised their offers by USD 5-10/MT. But due to ongoing Ramdan festival, prices are yet to be accepted. Current offers for billet are assessed at USD 315-320/MT, FoB Black Sea.
Indian billet tender closed at USD 300-305/MT, FoB
Recent billet (150*150mm) by Indian mill, Vizag Steel was concluded at USD 300-305/MT, FoB Indian East Coast. Cargo was heard to have been booked by Duferco and will be shipped to Bangladesh. Freight from India to Bangladesh is around USD 12-13/MT.
Current global billet offers
| Particular | Delivery | Grade (mm) | Currency | Price | W-o-W | M-o-M | Remarks |
| China Export | FOB China | 150*150 | USD | 295-305 | 0 | -17.5 | Export offers up due to ongoing investigation by Chinese officials on tax rebate given to billet exports. |
| India Export | FOB Vizag | 150*150 | USD | 300-305 | 0 | -75 | Recent Vizag Steel’s tender closed at USD 300/MT, FoB Indian East Coast. |
| CIS Export | FOB Black Sea | 125*125 | USD | 315-320 | 0 | -43.75 | Some deals were reported from Ukraine due to absence of Chinese offers. |
| South East Asia Import | CFR SE Asia | 150*150 | USD | 295-305 | 0 | NA | Prices stable due to limited supply from China. |
| Bangladesh Import | CFR Chittagong | 150*150 | USD | 305-315 | -5 | -35 | Indian billet sold at USD 318-320/MT, CFR Chittagong. Chinese billet is asked for USD 290-300/MT, CFR levels. |
| Middle East Import | CFR Dubai | 150*150 | USD | 310-315 | -5 | -45 | Prices may sustain on supply cut from China. |
| Turkey Import | CFR Turkey | 125*125 | USD | 330-335 | 0 | -38.75 | Prices up due to ongoing probe on Chinese billet exports, which has cut down the supply in global market. |
| India Domestic | Ex-Mumbai | 100*100 | INR | 22,600 | -200 | -400 | Sluggish demand led to price corrections. |
| China Domestic | Ex-Tanshang | 150*150 | RMB | 1980 | +150 | +40 | – |
Prices in Currency/MT
Source: SteelMint Research
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