Export offers for Chinese-origin billet continued to strengthen this week on higher raw material prices.
Recent increase in coking coal, iron ore and ferro alloy prices in seaborne market is lending support to Chinese billet prices in domestic and export market.
Price for 150*150 mm Q235 billets are assessed at USD 360-365/MT FOB China, which was USD 350-355/MT earlier this week. Domestic price are assessed at RMB 2450/MT ($365) ex Tanshang, prices including VAT of 17%.
However, market participants mention that not many trades heard at these prices. But if raw material prices continue to increase, billet prices may go up further.
Scrap demand will increase
Rising difference between global scrap and billet prices, latter being the expensive, market participants will switch to scrap. This is evident from recent buying from Turkish mills, Scrap demand has recovered owing to expensive billet.
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