Chinese billet export offers rose sharply on account of rising domestic prices. Last week, news of possible merger between two steel majors, Bao steel and Wuhan (WISCO), gave a boost to the market.
Current offers for Q235 150*150 mm billet are heard at over USD 310/MT FoB, which were hovering in the range of USD 300-305/MT, FoB China last week.
No major trades were reported at these levels, but at the same time there were limited suppliers in the market. Billet prices in Chinese domestic market rose by upto USD 25/MT in the month of June.
India
Last export tender by Vizag Steel for 150*150 mm billet was concluded at USD 300/MT, FoB Indian East Coast in early June. There is no active export tender at the moment but looking at global prices, Indian export offers should not be less than USD 305-310/MT FoB.
Some deals for 95*95 mm billet were concluded at USD 305-306/MT on ex-works basis for Nepal.
CIS
Export offers for square billet from CIS region are assessed at USD 315-320/MT, FoB Black Sea. There are limited trade activities in the market due to Ramdan festivals. But, market participants are expecting improvement in demand post Ramdan.
Global billet prices as on 4 Jul’16
| Particular | Delivery | Grade (mm) | Currency | Price | W-o-W | M-o-M | Remarks |
| China Export | FOB China | 150*150 | USD | 310-315 | +5 | +10 | Export offers up due to rising domestic prices |
| India Export | FOB Vizag | 150*150 | USD | 300-305 | 0 | -15 | Last tender was concluded at USD 300/MT FOB India |
| CIS Export | FOB Black Sea | 125*125 | USD | 315-320 | 0 | 0 | Some deals were reported from Ukraine due to absence of Chinese offers |
| South East Asia Import | CFR SE Asia | 150*150 | USD | 310-315 | – | – | Prices stable due to limited supply from China |
| Bangladesh Import | CFR Chittagong | 150*150 | USD | 305-310 | -5 | -20 | Bangladesh based buyers prefer scrap over billet due to increased import duty on billets in the budget |
| Middle East Import | CFR Dubai | 150*150 | USD | 315-320 | -10 | -5 | Prices may sustain on supply cut from China |
| Turkey Import | CFR Turkey | 125*125 | USD | 330-335 | 0 | +5 | Prices up on on going probe on Chinese billet exports which has cut down the supply in global market |
| India Domestic | Ex-Mumbai (basic) | 100*100 | INR | 22,000 | -600 | -1,100 | Persistent subdued demand. |
| China Domestic | Ex-Tanshang (incld 17% VAT) | 150*150 | RMB | 2,100 | +120 | +270 | Prices rise on low inventories and increased demand |
Offers in Currency/MT
Source: SteelMint Research
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