Absence of Chinese billet supplies, improved global demand and rising scrap prices have pushed up billetprices in global market.
Global Billet export offers up by around USD90/MT M-o-M-
Indian Billet export offers increased to USD 480/MT, FoB which is up by 15% M-o-M (USD63/MT), Chinese Billet export offers surged up by USD 90 MTM-o-Mamid supply crunch post mills closure to reach USD 530/MT, Fob.
Which all factors have resulted in sharp hike in billet export offers?
Decision of Chinese government to shutdown substandard steel production to protect the environment, impacted the supply of billet from China. The demand for billet remained high from South-east Asian nations.
Another factor that has resulted in surge in billet export offers is sharp hike in scrap prices. Countries like Turkey, Ukraine etc marched towards melting of iron and scrap to be able to serve as the demand of raw material.
The production of graphite electrodes has also been hit by the closure of small induction furnaces in China. And on the other hand the demand of the same has increased as more and more Electric Arc Furnaces being established by various countries, resulting insurge in billet export offers. 
Domestic billetprices in China hovering at six-year high
Market participants credit this price hike to crack down made by Chinese government on small induction furnaces which were making low quality steel and rising steel futures.
Chinese Billet prices in the local market shot up by USD 15/MT (Yuan 100/MT) on Thursday. Prices for 150’150mm Q235 were reported at 3,850-3,900/MT (USD 578), ex-Tangshan (including 17% WAT)
Domestic billet offers in Mumbai are assessed at INR 26,500-28,750MT (USD 414-449 MT) ex-works for Induction furnace grade and for size 125’125 mm. Trades remain moderate,
Source Steel Mint powered by Keyvan Jafari Tehrani
