Bid prices in the Chinese import billet market have increased further on August 30, following a 4 percent surge in rebar futures.
Chinese traders have reported the tradable level at $680-685/mt CFR versus deals at $670-675/mt CFR reported in the middle of last week. Offers from ASEAN suppliers have increased to $690/mt CFR. Though there have been no reports about new contracts, one source said that negotiations with Vietnamese exporters were held at $680/mt CFR on Friday.
Local billet prices in Tangshan have increased by RMB 40/mt ($6/mt) since Friday, reaching RMB 4,990/mt ($771/mt) ex-works, translating to $683/mt, excluding 13 percent VAT.
An improvement in the billet market has been seen as the sharp rise in rebar futures today has significantly supported sentiments. Futures for rebar at Shanghai Futures exchange have increased by RMB 206/mt ($32/mt) or 4 percent, closing at RMB 5,354/mt ($828/mt).
$1 = RMB 6.4677