Today, billet prices in Chinese domestic market slipped down by RMB 80-100/MT (USD 15/MT) against the last day closing. Current offers are heard at RMB 3,550/MT (USD 539/MT), which was at RMB 3,630/MT (USD 551/MT) on 21 Sep’17. Ex-works prices are including VAT of 17%.
Chinese traders attribute this price cut as a result of high capacity utilization by steel plants and slowing demand in domestic market.
Chinese traders believe that at these levels Chinese billet supplies may come back to seaborne market. Export levels for 150*150 mm from China are assessed at around USD 520/MT FOB against USD 530-535/MT FOB levels, although no trade have been reported.
Global Billet Export Offers – Billet export offers in world’s major markets have weakened slightly. Imported scrap prices have also shown correction this week. US origin HMS (80:20) prices have come down to USD 335/MT, CFR Turkey against last week’s assessment of USD 350/MT, CFR Turkey.
| Particulars | Currency | Reference Prices |
| Billet, FoB India | USD/MT | 515-520 |
| Billet, FoB China | USD/MT | 520 |
| Billet, FoB Iran | USD/MT | 500-510 |
| Billet, FoB Turkey | USD/MT | 530-540 |
| Billet, FoB Black Sea | USD/MT | 520 |
| Billet, CFR South East Asia | USD/MT | 540-545 |
Prices for 150*150mm billets
Source: SteelMint Research
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