Chinese billet export offers have corrected a bit this week as buyers question sustainability of prices. Current offers for 150*150mm Q235 billets are heard hovering at USD 370-375/MT FOB China, against price levels of USD 375-380/MT FOB China last week.
Market participants mention that owing to subdued demand in finished steel, buyers are not willing to take long positions.
India: Indian tender of 25,000 MT billet (150*150mm) was concluded at USD 383/MT FOB levels, last week. Cargo was bought by Tata international and most likely will be shipped to Thailand, according to market participants.
Another tender of 10,000 MT billet (90*90mm) was also concluded at around USD 383/MT FOB India by Tata International and may be shipped to Africa.
CIS Regions: Russian and Ukrainian steel mills have raised their offers to USD 385-390/MT FOB Black sea, due to higher cost of production. Although buying has slowed down at these prices.
| Particular | Delivery | Grade | Currency | Price | W-o-W | Remarks |
| China Export | FOB China | 150*150mm | USD | 370-375 | 375-380 | Chinese domestic billet offers fall on buyers resistance |
| India Export | FOB Vizag | 150*150mm | USD | 380-382 | 370-380 | Last tender was concluded atUSD 383/MT FOB |
| CIS Export | FOB Black Sea | 125*125mm | USD | 385-390 | 365-370 | Currency depreciation and high production cost makes producers to raise offers |
| South East Asia Import | CFR SE Asia | 150*150mm | USD | 385-390 | 380-390 | Buyers resist as domestic demand does not support higher prices |
| Bangladesh Import | CFR Chittagong | 150*150mm | USD | 380-385 | 375-380 | Buyers prefer scrap over billet as billet attracts high import duty |
| Middle East Import | CFR Dubai | 150*150mm | USD | 385-395 | 365-370 | Prices increase although buying interest remains low |
| Turkey Import | CFR Turkey | 125*125mm | USD | 405-410 | 360-365 | Rising billet offers from CIS and China is forcing Turkish steel mills to go for scrap imports |
Source: Steelmint Research
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