Global billet offers continue to move up this week, with most of the suppliers raised their offers by USD 10-20/MT. Rising scrap prices in global market and low inventories with Chinese mill have lend support to global billet prices.
On the contrary, buyers remain extremely cautious on consistent rise in prices. Buyers feel that rise in prices are unjustified and prices may come down anytime soon.
But at the moment, its a complete sellers market. Buyers are willing to pay a premium for immediate delivery to capitalize price hike.
Also, with delivery defaults taking place from Chinese exporters, buyers are seeking alternative options.
Indian 30,000 MT billet export tender receives overwhelming response
Recent billet (150*150 mm) tender by Vizag Steel fetched overwhelming response. Bids were heard to receive at around USD 380-385/MT, FoB Indian East coast. Last tender for the same size material was concluded at USD 363/MT, FoB India.
Current global billet prices
| Particular | Delivery | Grade (mm) | Currency | Price | W-o-W | M-o-M | Remarks |
| China Export | FoB China | 150*150 | USD | 400-410 | +23 | +93 | Chinese billet export offers remain high on rising domestic prices and low inventories. |
| India Export | FoB Vizag | 150*150 | USD | 380-385 | +20 | +55 | Vizag Steel’s recent tender received bids at around USD 380-385/MT. |
| CIS Export | FoB Black Sea | 125*125 | USD | 410-420 | +23 | +85 | Higher scrap prices is lending support to billet prices in CIS region. |
| South East Asia Import | CFR SE Asia | 150*150 | USD | 395-405 | +5 | – | Offers rise in-line with Chinese prices. |
| Bangladesh Import | CFR Chittagong | 150*150 | USD | 400-410 | +13 | +78 | Low buying interest, mills have stock to last for next 1-2 months. Indian induction furnaces prefer billet. |
| Middle East Import | CFR Dubai | 150*150 | USD | 400-410 | +24 | +80 | Offers moved up on rising scrap prices; domestic billet prices also remain strong. |
| Turkey Import | CFR Turkey | 125*125 | USD | 420-430 | +23 | +85 | Prices up on rising imported scrap offers, which touched USD 310-320/MT, CFR Turkey. |
| India Domestic | Ex-Mumbai | 100*100 | INR | 24,200 | 0 | -500 | Limited trade activities led to price corrections. |
| China Domestic | Ex-Tanshang | 150*150 | RMB | 2,490 | -70 | +510 | Prices remain volatile in domestic market. |
Price in Currency/MT
Source: SteelMint Research
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