Rebar manufacturers in Bangladesh prefer Chinese Billet over Indian, according to market participants. Billet offers from Chinese manufacturers are cheaper by almost USD 10-15/MT compared to Indian sellers.
“Chinese offers are coming to us at USD 440-445/MT CFR Chittagong. Billet from CIS region is expensive compared to China by USD 5-10/MT. Indian Billet is not workable now considering price benefit”, said an official at one of Bangladesh’s largest Steelmakers.
Another re-roller pointed out that they had booked decent quantities from South East Asia in the month of October and not keen in new bookings. Re-rollers also mentioned that offers from Russian manufacturers are quite competitive because of depreciated Russian currency, Ruble.
Indian steelmaker, Rashtriya Ispat Nigam Ltd (RINL) has concluded a deal of 10,000 MT Bloom at USD 419/MT and 5,000 MT Billet at USD 436/MT FoB Vizag, in the month of December. Indian domestic Billet prices moved up due to low production and proposed rise in electricity charges in Maharashtra.
MS Billet Offers as on 09 Dec’14
| Particular | Prices | M-o-M Changes |
| Ex-Mumbai | INR 30,100/MT | +150 |
| Ex-Chennai | INR 29,550/MT | -700 |
| FoB India | USD 435/MT | -50 |
| FoB Black Sea | USD 395/MT | -65 |
| CIF Bangladesh | USD 445/MT | NA |
| CIF Srilanka | USD 455/MT | NA |
Reference prices
Source: SteelMint Research
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