Chinese exporters have reduced billet offers by USD 5-10/MT owing to low demand and declining MS billet prices in domestic market.
Chinese billet export offers have fallen by USD 5-10/MT amidst low demand, piling up of inventory at Chinese mills and declining prices in domestic market. Current offers for 120*120 mm Billet are assessed at USD 360/MT CIF India, USD 365/MT CIF Bangladesh, USD 345/MT CIF South East Asian Countries and around USD 365/MT for Middle East buyers.
“Billet export offers have come down due to low buying interest and piling up of inventory at Chinese steel mills. Steel mills have cut down their offers to an extent of USD 10/MT. Current offers for commercial grade (chromium added) are in the range of USD 360-365/MT, CIF Bangladesh and India”, said an executive of a big trading house based in Singapore.
In addition, scrap traders are worried as cheaper billet offers from China may pull down scrap prices in global market.
Imported Billet Offers as on 15 June’15
| Particular | Offers in USD/MT |
| CFR India | 360-365 |
| CFR Bangladesh | 360-365 |
| CFR South East Asia | 345 |
| CFR Middle East | 360 |
| CFR Turkey | 375 |
| FoB India | 395 |
| FoB Black Sea | 360 |
| FoB India (Bloom) | 370 |
Source: SteelMint Research
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