Chinese exporters returned to market this Monday, after a week long holiday. Market was expecting billet prices to fall due to sharp decline in seaborne scrap prices.
However Chinese offers remain at pre-holiday levels. Offers for Q235 grade 150*150mm size billets are being assessed at USD 400-405/MT FOB China main port. No major trades were reported at these levels.
Chinese billet export offers remain at higher levels as compared to offers from CIS based steel makers, which are assessed at around USD 360-370/MT FOB Black Sea.
Participants believe that higher cost of iron ore and coking coal leaves little scope for Chinese mills to cut down their cost.
Notably 90% of steel making in China is through Blast Furnace route (BF) which requires coking coal and iron ore as major feed.
On the other hand CIS region has more number of electric arc furnaces (EAF), which are dependent on scrap.
Asian Market
Indian billet export price assessment has declined sharply this week to around USD 370-375/MT FOB India. Last week’s assessment was at USD 390-400/MT FOB India.No deals have been reported at these levels.
Recent tender by Vizag Steel for 20,000 MT bloom (150*150mm) was cancelled as bidder failed to sign the contract on time. Another lot of 10,000 MT billet (90*90) was concluded at USD 403/MT FOB India.
South East Asia
South East Asian buyers preferred to wait till market takes a clear direction. Although offers from CIS region are being heard in the range of USD 390-400/MT CFR South East Asia, where as Chinese offers will not be less than 410-415/MT CFR.
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