Chinese billet export offers continue to move up this week. Current offers for Q235 150*150 mm sized billets were assessed at USD 415-420/MT FOB China main port, which were at USD 395-400/MT FOB last week.
Market participants mention that prices have been rising on low availability and better demand in domestic market. Above that, higher cost of raw material (Iron ore and coking coal) is supporting prices in Chinese domestic market.
“Offers are rising every week despite thin trade activities in global market. Buyers are now keener to buy scrap instead of billet. Current offers from Chinese suppliers are not less than USD 415/MT FOB China” said a trader based in China.
More Indian Billet Export Tenders Expected in Dec/Jan
Market participants expect more export tenders from Indian manufacturers in the month of December and January. Due to de-monetization, domestic demand has decreased which will prompt manufacturers to explore global market.
Last tender by Vizag steel for 20,000 MT billet was concluded (in Nov 2016) at around USD 383/MT FOB India main port.
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