Chinese billet export offers continue to extend gains to rising domestic prices, which is clearly is result of high coking coal and iron ore prices. Prices have increased by about 5-10/MT since starting of this week and USD 20-25/MT since starting of this month.
Current offers for Chinese 150*150mm Q235 grade were assessed at USD 375-380/MT FOB China main port, against domestic prices of RMB 2560/MT (USD 380) ex-Tangshan, included VAT of 17%.
Other billet exporting countries are likely to increase their offers in line with high cost of production. Notably coking coal prices have increased over USD 200/MT in last three months.
INDIA:
Ongoing tender of 25,000 MT Billet (150*150mm) by RINL (Vizag steel) for December delivery, heard to have fetched highest bid above USD 375/MT FOB India. Other manufacturers are offering similar specification billet at about USD 395-400/MT FOB India for early December delivery, according to participants.
Last tender by RINL was concluded at USD 335/MT FOB India for early December delivery.
CIS Regions:
Russian and Ukrainian suppliers have also increased their offers. Current prices are assessed at USD 365-370/MT FOB Black Sea.
| Particular | Delivery | Grade | Currency | Price | W-o-W | Remarks |
| China Export | FOB China | 150*150mm | USD | 375-380 | 350-355 | Chinese domestic billet offers continue to rise |
| India Export | FOB Vizag | 150*150mm | USD | 370-380 | 330-335 | Last tender was concluded atUSD 335/MT FOB |
| CIS Export | FOB Black Sea | 125*125mm | USD | 365-370 | 345-350 | Currency depreciation and high production cost makes producers to raise offers |
| South East Asia Import | CFR SE Asia | 150*150mm | USD | 380-390 | 355-365 | Offers rise due to limited supply and high Chinese offers |
| Bangladesh Import | CFR Chittagong | 150*150mm | USD | 375-380 | 365-370 | Local demand remains subdued. Buyers prefer scrap over billet |
| Middle East Import | CFR Dubai | 150*150mm | USD | 375-380 | 365-370 | Prices increase on high offers from China and Iran |
| Turkey Import | CFR Turkey | 125*125mm | USD | 370-375 | 360-365 | Rising billet offers from CIS and China .Turkish steel mills to go for scrap imports |
Source: SteelMint Research
Prices in USD/MT
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