Chinese billet export offers rise, however sustainability questioned
Chinese billet export offers rise on higher domestic offers. Current offers for Q235 150*150 mm billet are assessed at USD 390-400/MT FoB China against 380-390/MT FoB few days’ backs.
Prices have increased on higher domestic offers, which have increased by RMB 170 (USD 25) /MT W-O-W. Current offers for billet in Tangshan are at RMB 2,920 (USD 425)/MT ex -mill, prices including 17% VAT.
Chinese steel prices are quite volatile on short selling by traders. However with fresh capacity cuts proposed by the Chinese government ,steel prices have increased. Although fundamentals still remain weak.
“Chinese traders were trying to short sell billet and HRC cargoes on anticipation that prices may fall . However with rising steel futures , offers have disappeared from the market ” said a trader based in Singapore.
Indian billet export offers
Indian billet exports remain quiet as Indian currency appreciates and higher realizations in domestic market. No bulk trade has been reported in last few weeks. Last trade of 10,000 MT billet was concluded at USD 387/MT FoB in last week of March.
However there are no firm offers but price expectation by Indian mills will not be less than 405-410/MT fob India for 150*150 mm , as mentioned by Indian traders
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