Chinese Billet Prices 9% Up and Indian Prices 2% Down in a Week

MS billet prices in Tangshan rose to RMB 1,870/MT against RMB 1,710/MT previous week (prices including 17% VAT). The Indian billet prices have declined by INR 500/MT in Mumbai.

Chinese square billet prices rose to 9% during week ending 20 Jul’15 after a persistent decline from the past few weeks. Amid production overcapacity coupled with subdued demand in Chinese steel market, the domestic makers have been declining their offers aggressively. However, now in Tangshan prices rose to RMB 1,870/MT from RMB 1,710/MT a week ago (prices inclusive of 17% VAT), owing to strict pollution norms imposed by the government in major steel producing city of China – Tangshan.

The low-pricing strategy of China has hampered the business of other nations’ suppliers. Turkey, South Korea and India – the three largest importers of scrap, are now preferring Chinese billet instead of scrap owing to low cost. This in turn has put pressure on scrap suppliers across the globe and prices have declined by USD 30/MT in a month.

Indian Billet Market Lull over Seasonal Slowdown

Seasonal slowdown in Indian domestic market has led to correction in MS billet prices. Prices in Durgapur have declined by INR 800/MT, Raipur & Rourkela INR 300/MT, Mumbai INR 500/MT and Chennai INR 100/MT.

In the present circumstances, imported and domestic steel prices are almost similar; making offers very competitive.

 Global and Domestic Billet Prices 

Source: SteelMint Research