Chinese billet export offers observed an uptrend of USD 5-10/MT this week on account of scheduled production cut announced by Chinese government. It is expected that production will be hampered during 15-30 Jul’16 due to pollution constrains.
Current offers for 150*150 mm billet Q235 are heard in the range of USD 315-320/MT, FoB China main port, which were hovering within USD 310-315/MT, FoB last week.
It is expected that this will have a short term impact on global billet market. Prices may gain momentum in CIS and Asian regions, but sustainability will always remain a question.
Global MS billet prices as on 13 Jul’16
| Particular | Delivery | Grade (mm) | Currency | Price | W-o-W | M-o-M | Remarks |
| China Export | FOB China | 150*150 | USD | 315-320 | 0 | +25 | Export offers on production cut by steel mills in Tanshang. |
| India Export | FOB Vizag | 150*150 | USD | 300-305 | 0 | -2.5 | No active tender, but looking at rising Chinese offers, prices should be around USD 305-310/MT FOB. Last tender was concluded at USD 300/MT FOB India. |
| CIS Export | FOB Black Sea | 125*125 | USD | 315-320 | 0 | +5 | Trade activities remain limited, but missing Chinese supplies may lend support to prices and demand. |
| South East Asia Import | CFR SE Asia | 150*150 | USD | 320-325 | +10 | – | Prices rise due to limited supply from China. |
| Bangladesh Import | CFR Chittagong | 150*150 | USD | 305-310 | -5 | -5 | Bangladesh based buyers prefer scrap over billet due to increased import duty on billets in the budget |
| Middle East Import | CFR Dubai | 150*150 | USD | 320-325 | -5 | +10 | Prices sustain on supply cut from China |
| Turkey Import | CFR Turkey | 125*125 | USD | 330-335 | 0 | +10 | Trade activities remain limited due to festive season. But, it is expected to pick up in coming weeks. |
| India Domestic | Ex-Mumbai | 100*100 | INR | 21,300 | -200 | -1,200 | Sluggish demand led to fall in prices. |
| China Domestic | Ex-Tanshang | 150*150 | RMB | 2,140 | +50 | +250 | Prices rise on low inventories and production cut. |
Prices in Currency/MT
Source: SteelMint Research
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