Prices at Chinese local market also fell by RMB 70/MT (USD 10-11) in two trading days.
Most trending threat in global market, the Chinese billet have witnessed a further fall of USD 10/MT in two days time. Offers to South Asia which were USD 335-340/MT last Friday have presently dropped to USD 325-330/MT CFR basis.
Price fell in local market too
Local market for billet in China also witnessed a fall of around RMB 70/MT in past two trading days. Billets assessed there at RMB 1,800/MT last Friday are currently offered at RMB 1,730/MT, with a fall of RMB 70/MT (USD 10-11).
Oversupply of Chinese billet and continuous decline in its price has put all global steelmakers under pressure. Currently, MS billet prices in international market are assessed at USD 310/MT FoB China, USD 350/MT FoB Black Sea, USD 365/MT CNF Turkey and USD 325-330/MT CNF Bangladesh.
Steelmakers at Iran also demand protection
In response to increasing cheaper Chinese steel import, this year many nations including Indonesia, Turkey, the European Union, Mexico and India have imposed various duties in order to protect their domestic steel manufacturers.
Adding to the list of countries seeking protection, now steelmakers at Iran have also requested for increase in import duty on flat and long steel products.
A board member of the Iran Steel Producers Association (ISPA) said, “We have requested the government to hike import duty on flat steel products by up to 40% and on long steel products by up to 30% in order to guard our domestic manufacturers.”
Outlook is that steelmakers across the globe will face many hurdles if their governments didn’t take any effective measures against cheaper Chinese billet imports.
[su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]Offers to Bangladesh fall by USD 20 post budget
Chinese billet offers to Bangladesh experienced a fall of USD 20/MT in a month’s time, after Bangladesh declared duty hike for billet import in Budget 15-16. Pre-budget, the offers for billet were hovering at around USD 345-350/MT, which today is at USD 325-330/MT, CFR Bangladesh. Sources said, “There is only a single trade of bulk Chinese billet heard after budget at USD 340/MT (15 days back).”[/su_note]
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