Bangladesh based re-rollers are anticipating hike in import duty on billet in upcoming budget session, which is scheduled in first week of June.
Currently, billet import attracts a fixed duty of 7,000 Bangladeshi Taka (USD 90) if imported from non-SAARC countries and zero duty if imported from SAARC nations (including India).
Re-rollers in Bangladesh shared a mixed view on duty structure for billet imports from SAARC and non-SAARC nations. Some mills are in favor of keeping zero duty under SAFTA agreement, whereas, some believe that this will hurt domestic billet industry.
Re-rollers have stalled their import and are waiting for clarification from the government. Bangladesh imports around 1.5-2 MnT of billet annually.
Chinese billet export offers at USD 300-310/MT FoB
Chinese billet export offers fell marginally this week by USD 5/MT. Current offers for 150*150 mm Q235 grade were assessed at USD 300-305/MT, FoB China and Q275 at USD 305-310/MT, FoB China main port.
Chinese domestic prices noticed some strength on last Friday due to possible production cut in domestic market. However, fundamentals remain week.
Global billet offers in week 23
| Particular | Delivery | Grade (mm) | Currency | Price | W-o-W | M-o-M | Remarks |
| China Export | FOB China | 150*150 | USD | 300-310 | -2.5 | -80 | Chinese offers remain volatile. |
| India Export | FOB Vizag | 150*150 | USD | 360-370 | -5 | -11.67 | Indian recent bloom tender failed to receive response. Company was expecting USD 370/MT FOB, according to sources. |
| CIS Export | FOB Black Sea | 125*125 | USD | 340-350 | -18.75 | -73.33 | CIS countries drop their offers on account of cheaper supply from China. |
| South East Asia Import | CFR SE Asia | 150*150 | USD | 315-320 | NA | NA | Prices fall on China factor. |
| Bangladesh Import | CFR Chittagong | 150*150 | USD | 320-330 | -10 | -70 | Buyers wait for government’s decision to increase import duty on billet in upcoming budget (Jun’16). |
| Middle East Import | CFR Dubai | 150*150 | USD | 320-330 | -15 | -83.33 | Buyers expect further fall in prices. |
| Turkey Import | CFR Turkey | 125*125 | USD | 340-350 | -18.75 | -73.33 | Chinese offers remain competitive as compared to CIS regions. Lower billet offers will put pressure on scrap prices. |
| India Domestic | Ex-Mumbai | 100*100 | INR | 22,950 | -250 | -750 | Lack of trade activities led to price correction. |
| China Domestic | Ex-Tanshang | 150*150 | RMB | 1,820 | -50 | -670 | Sluggish demand |
Prices in USD/MT
Source: SteelMint Research
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