Chinese Billet Offers to Bangladesh Fell by USD 5-10/MT W-o-W

Chinese billet, which is quite popular in Bangladesh market, has noticed a downfall of USD 5-10/MT this week. Current offers for commercial grade billet of size 130*130 mm (3SP) are assessed at around USD 300-305/MT. These offers hovered at USD 305-310/MT last week.

“Chinese exporters are quite aggressive in the market. Billet, which was traded at USD 310/MT, CFR Chittagong last week, is now being offered at USD 305/MT. Although, buyers are looking for offers at USD 300/MT. Generally, Bangladesh based rolling mills buy 4SP grade billet which is costlier by USD 5/MT” said a trader based in Singapore.

Bangladesh billet import has increased significantly in last 1 year owing to competitive prices offered by Chinese suppliers. On an average, Bangladesh imports 150,000-200,000 MT billet every month.

Vizag Steel tender

State owned Vizag Steel Ltd, one of India’s premium billet makers and an active supplier in Bangladesh market, may face low response for its upcoming export tender of 90,000 MT billet/bloom.

Participants mentioned that last export tender of 150*150 mm bloom was closed at USD 325/MT FOB India. The global trading house which bought it is now facing difficulties in finding buyers in Bangladesh market. Freight from India to Bangladesh is around USD 16-17/MT.

Global Billet offers as on 14 Sept’15

Source: SteelMint Research