As Chinese markets reopened after New Year holidays, billet export offers saw a drastic fall, plunging to 6-month low. Offers have dropped by almost USD 15-20/MT in last one week.
Current offers for 150*150mm Q235 billet are assessed at USD 390-400/MT FOB China main port, which was hovering at USD 410-415/MT FOB last week.
Market participants attribute this price decline to falling coking coal prices, that is by USD 25/MT in last one week. Notably coking coal prices have dropped to USD 210-215/MT FOB Australia from a high of USD 310/MT FOB Australia.
“Chinese domestic prices increased a bit on account of anticipation that government may take stricter norms to control pollution, which may lead to production cut. But fundamental remains weak. Buyers are hesitant in taking positions at any levels and are waiting for market to take a clear direction” said a billet trader based in Singapore.
India Billet
India’s largest exporter, Vizag steel is expected to come up with a fresh tender in next week for February shipments.
Last deal from India for 150*150mm BF grade billet was settled at USD 405/MT FOB Haldia port. Cargo was shipped to Indonesia.
Small deals of 90*90 and 100*100mm induction furnace billets from India’s East region (West Bengal) was settled at USD 370-375/MT (ex-mill) for Nepal.
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