IRON and STEEL
Chinese billet prices notice stability after a sharp fall. Domestic prices increased by RMB 60 ($9) in last two days.
Chinese domestic billet prices observed some rebound on Thursday amid improved export enquiries, SteelMint learned from market sources.
Major billet producers cumulatively increased billet prices by RMB 50 ($7) to RMB 3100 ($447), ex-Tangshan, China, including 17% VAT.
Chinese exporters report rising enquiries for wire rods and billets from China at these levels.
"Prices had decreased too sharply in domestic market and exporters have been waiting. If they feel prices have bottomed out, they will start buying. We expect some transactions to resume from next week," said a trader.
This week Chinese steel market started on a positive note as nation’s currency Yuan appreciated against USD.This led to price gains in domestic market following increase in export offers from China.
Iranian billet export offer continues to fall from last few weeks. Offers decreased by around USD 10/MT W-o-W to around USD 365-370/MT FoB. Last week, billet export offers of Iran were noted to be around USD 370-380/MT FoB.
Rashtriya Ispat Nigam Limited (RINL)- the state-owned steel maker under the Ministry of Steel, had invited tender for export of 10,000 MT Billets and 40,000 MT Blooms. Bid due date was till 04 Jan’19 and bid validity was till 11 Jan’19.
Indian mid sized mills have reduced wire rod export offers to Nepal by around USD 10-15/MT in the last one week, according to SteelMint's weekly assessment. Current offers for 5.5 mm reported at USD 510-515/MT on ex-mill basis (at Durgapur), which is equivalent to USD 535-540/MT CNF Nepal Raxaul land border.
Indian mills to suffer as Nepal based importers are exploring options from China and Middle East amid price competitiveness.
Indian domestic billet prices drop by INR 400-1,000/MT(USD 6-14) in last one month. Current prices for induction grade billet (which is more popular in merchant market) hovers at INR 32,600/MT (USD 466) ex-Mumbai.