The lackluster global billet market is still increasing pressure on billet makers worldwide. In the month of Nov’15, prices of common Carbon square billet of size 150*150 mm declined by RMB 60/MT (USD 9/MT) to RMB 1,550/MT (USD 242/MT till 26 Nov’15) in China’s local market.
Meanwhile, Chinese export offers fell by USD 10-13/MT W-o-W and USD 15-16/MT M-o-M. Currently, global offers are assessed at USD 252/MT FoB China, USD 350/MT FoB India and USD 282/MT FoB Black Sea. While, Chinese billet offers to Bangladesh are assessed at USD 268/MT, CNF Bangladesh.
Prolong dwindling demand in Chinese domestic market and oversupply in market have pulled down offers to such a level. However, market participants expect limited scope of further fall from this level as many Chinese mills have shutdown their plants, following heavy losses.
Recently, SAIL has also concluded a deal of about 10,000-15,000 MT billet of size 150*150 mm at around USD 255-260/MT, FoB Haldia port, which is likely to be shipped to Bangladesh.
In addition, an export tender of RINL for 90,000 MT billet/bloom has expired yesterday (26 Nov’15).
Global billet offers in Week 47
| Particulars | Prices | W-o-W | M-o-M |
| FoB China | 252 | -13 | -16 |
| FoB India | 350 | 0 | 0 |
| FoB Vizag, India | 285 | 0 | -5 |
| FoB Black Sea | 282 | +10 | +14 |
| CNF Turkey | 280 | 0 | +5 |
| CNF Dubai | 280 | 0 | -5 |
| CNF Bangladesh | 268 | -8 | -12 |
Offers in USD/MT
Source: SteelMint Research
Leave a Reply