Chinese billet export offers this week noticed further uptrend due to higher domestic prices. Buyers remain extremely hesitant on high volatility in the market.
Current offers for Chinese 150*150 mm billet Q275 grade are assessed at around USD 335-345/MT, FoB Chinese main port against USD 320-325/MT, FoB last week. Some deals have been reported concluded at USD 330-335/MT, FoB China levels.
Participants mention that buyers are hesitant to make fresh bookings as previous deliveries are still pending. Some also reported that many steel mills have switched to scrap over billet, which is not generating demand for billet at higher prices.
“Billet offers are moving up consistently owing to low inventories and rising prices in domestic market. Several small and mid-sized mills are defaulting on deliveries, which is lent support to prices”, said a Chinese steel trader.
Current domestic and global billet offers
| Particular | Delivery | Size (mm) | Currency | Price | W-o-W | M-o-M | Remarks |
| China Export | FoB China | 150*150 | USD | 335-345 | +13 | +17 | Export offers moved up on rising domestic prices. |
| India Export | FoB Vizag | 150*150 | USD | 320-325 | +10 | +15 | 50,000 MT tender by Vizag Steel expired on 11 Apr’16. Prices are yet to be finalized. Participants expect bids to touch USD 350-360/MT, FoB Vizag. |
| CIS Export | F0B Black Sea | 125*125 | USD | 345-350 | +15 | +43 | Offers moved up on rising scrap prices in Turkey. |
| South East Asia Import | CFR SE Asia | 150*150 | USD | 345-350 | +15 | +40 | – |
| Bangladesh Import | CFR Chittagong | 150*150 | USD | 340-350 | +5 | +8 | Buyers reluctant on rumors that government may increase duty on billet. |
| Middle East Import | CFR Dubai | 150*150 | USD | 340-350 | +5 | +22 | Trading activities remain low. |
| Turkey Import | CFR Turkey | 125*125 | USD | 350-360 | +20 | +48 | Buyers anticipate that prices should firm up. |
| India Domestic | Ex-Mumbai (excld excise & taxes) | 100*100 | INR | 24,100 | -300 | -400 | Prices fall on low construction activities. |
| China Domestic | Ex-Tanshang (incld 17% VAT) | 150*150 | RMB | 2,250 | +190 | +410 | Prices move up. |
Prices in Currency per MT
Source: SteelMint Research
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