Chinese billet export offers this week noticed some uptrend due to higher domestic prices. But, buying interest remains weak across the globe.
Current offers for Chinese 150*150 mm billet Q275 grade are assessed at around USD 320-325/MT, FoB Chinese main port against USD 300-310/MT FoB last week.
Participants mention that buyers are hesitant to make fresh bookings as previous deliveries are still pending. Some also mention that many steel mills have switched to scrap over billet, which is not generating demand for billet at higher prices.
“Offers have gone up on account on rising domestic prices, which is a result of possible production cut in China. Current offers for 150*150 mm billet are around USD 320-325/MT, FoB China main port, but buying interest remains missing”, said a Chinese steel export.
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 | 320-325 | +10 | +10 | Export offers move up on rising domestic prices |
| India Export | FoB Vizag | 150*150 | USD | 320-325 | 0 | +29 | 50,000 MT tender by Vizag Steel is due on 11 Apr’16. People expecting price bids at USD 320-325/MT, FoB Vizag |
| CIS Export | F0B Black Sea | 125*125 | USD | 330-335 | +10 | +58 | Offers moved up on rising scrap prices in Turkey; unlikley to move up further |
| South East Asia Import | CFR SE Asia | 150*150 | USD | 325-330 | +10 | – | – |
| Bangladesh Import | CFR Chittagong | 150*150 | USD | 330-335 | +2.5 | +21 | Buyers reluctant on rumors that government may increase duty on billet |
| Middle East Import | CFR Dubai | 150*150 | USD | 330-335 | +5 | +35 | Trading activities remain low |
| Turkey Import | CFR Turkey | 125*125 | USD | 330-340 | +5 | +51 | Buyers anticipate that prices may come down |
| India Domestic | Ex-Mumbai (excld excise & taxes) | 100*100 | INR | 24,500 | -100 | +100 | Prices fall on low demand |
| China Domestic | Ex-Tanshang (incld 17% VAT) | 150*150 | RMB | 2,080 | +100 | +60 | Prices move up |
Prices in Currency per MT
Source: SteelMint Research
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