Chinese billet export offers increase by $10-15/t owing to rising domestic prices
Current offers for 150*150mm Q235 billet is being offered at $ 345-350/MT FOB China, according to market participants. Last week prices were assessed at $ 335-340/MT FOB China main port.
Prices have increased in line with rising domestic prices, which are a result of expensive coking coal and ferro alloys. Prices of both key raw materials have increased significantly in last few months.
Domestic prices for same grade have increased by RMB 60-80/t ($9-12) this week. Offers for 150*150mm at Tangshan (which is a key billet producing region in China) is hovering at RMB 2300-2310/MT ($345-346), including VAT of 17%.
Scrap Demand to Increase
Scrap demand likely to increase in seaborne market due to rise in coking coal prices. Blast furnaces which contribute (70%) of world’s crude steel production, will seek to use more scrap in order to reduce their cost of production.
Also cost of production from countries like China, Japan, Korea, Russia, Ukraine and India, which are largely dependent on coking coal, will increase.
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