Chinese Billet Export Offers Unchanged

Chinese exporters hold billet offers this week. Current offers for Q275 grade billet are assessed at USD 235-240/MT, FoB China main port for January loading.

Market participants expect that prices may come down little bit from these levels but sharp fall is unlikely at the moment.

Some traders anticipate that Chinese government may cut off rebate on exports of steel next year, which may make Chinese steel expensive in global market.

Chinese steel export touched an all time high of 100 MnT during 2015 (Jan-Nov).

Current offers

1. Current offers for Q275 grade of size 150*150 mm billet from China are assessed at USD 235-240/MT, FoB China.
2. Chinese billet offers to Bangladesh assessed at USD 255-260/MT, CFR Chittagong.
3. Offers to South East Asia are assessed at USD 250/MT, CFR Vietnam.
4. Indian last billet export tender concluded at USD 260-265/MT, FoB Indian main ports.
5. Billet offers from CIS region corrected by USD 5/MT to USD 260/MT, FoB Black Sea.

Depreciating Chinese currency a concern

Last week, Chinese currency, RMB hit its weakest level against the US dollar in more than four years, the People’s Bank of China announced that it intended to change the way in which the RMB’s value is fixed. In the future, the RMB will be measured against a basket of currencies, rather than the dollar, opening the door for further devaluation

The downward slide in the RMB’s value, which makes Chinese exports cheaper, is threatening other Asian exporters; already being hit by the global economic slowdown.

Global Offers as on 15 Dec’15

USD 1 = RMB 6.4559 ; INR 66.91
Source: SteelMint Research