As Chinese markets reopened after New Year holidays, billet export offers continue to move up on rising domestic demand and strong futures. Offers have increased by almost USD 10-15/MT in last one week.
Current offers for 150*150 mm Q235 billet are assessed at USD 410-415/MT FOB China main port, which was hovering at USD 395-400/MT FOB last week.
Market participants attribute this price hike to rising domestic prices, which have increased to about Yuan 3,000-3,150/MT (USD 435-455) in last one week. Prices are ex-Tanshang, including excise of 17%.
“There is no clear direction as of now; people are expecting some clarity to come this week. But overall market looks bullish and prices likely to stay on upward trend.” Said a Chinese billet trader based in Singapore.
Global Billet Export Offers:
| Particular | Delivery | Grade | Currency | Price | W-o-W | Remarks |
| China Export | FOB China | 150*150mm | USD | 410-415 | 395-400 | Chinese prices increase on rising steel futures and domestic demand |
| India Export | FOB Vizag | 150*150mm | USD | 390395 | 390-395 | Last tender by Vizag steel was cancelled. Highest bid was received at USD 397.t/t FOB |
| CIS Export | FOB Black Sea | 125*125mm | USD | 370-375 | 365-370 | Prices increase, likely to increase further |
| South East Asia Import | CFR SE Asia | 150*150mm | USD | 415-420 | 410-415 | No fresh trades reported currently. However rising billet offers from China, may push SE Asia buyers to accept higher prices |
| Bangladesh Import | CFR Chittagong | 150*150mm | USD | 400-405 | 400-405 | Not much of buying interest from Bangladesh re-rollers. Buyers prefer scrap over billet as billet attracts high import duty |
| Middle East Import | CFR Dubai | 150*150mm | USD | 400-410 | 400-410 | Prices stable on comparatively lower offers from Iran and CIS region |
| Turkey Import | CFR Turkey | 125*125mm | USD | 380-385 | 370-375 | Billet prices rise after scrap prices recovered |
Source: SteelMint Research
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