China Continues to Book Imported Billets as Offers Drop

China was reported to book approximately 100,000 MT billets from all billet export majors'; Russia, India, and Iran recently.

-- Nearly 40,000 MT Russian billets were reportedly booked to China at USD 400/MT, CFR

-- Indian origin billet for 40,000 MT quantity was heard to have booked to China at USD 400/MT, CFR for May'20 shipment

-- Iranian origin billet was reported to be booked at USD 390-395/MT, CFR

With the above-mentioned deal, the export offers from all the billet exporting nations have witnessed a sharp drop. The fallen global scrap prices in support with the epidemic have pull down the export offers of all the billet majors. The epidemic has also resulted in depreciating the currency of these three nations against USD.

For Instance, on 17 Mar'20, Ruble slipped heavily to 76.8 against USD, to hit the 5-year low mark. And today (On 20 Mar'20) the same was traded at RUB 78.54 against USD till 07:20 UTC. While Indian Rupee (INR) is being traded at 74.89 against USD till 07:30 UTC.

On the contrary, unlike the rest if of the world, the intensity of the COVID-19 is getting low in China and the steel market has started improving.

Meanwhile, the domestic billet prices in China are at RMB 3150/MT ex Tangshan, including VAT. In the current situation, the domestic billet could look reasonable to procure but it is worth noting that the shipments of the above-mentioned deals are scheduled from late Apr'20 onwards. And with the current improving rate of the domestic billet market of China, the current import deal is a wise move from the Chinese marketers.