Prices for local billet in the Chinese market have started to improve this week, but import activity has remained subdued so far, taking into account still low bids from major buyers.
Local billet prices in Tangshan have improved for the second day in a row, adding RMB 20/mt ($3/mt) today and reaching RMB 4,930/mt ($761/mt) ex-works, translating to $673/mt, excluding 13 percent VAT.
In such a situation, the tradable price level for imported billet has been assessed by market players at $660-665/mt CFR. Late last week, the valuations of Chinese customers were $650-655/mt CFR, while some traders were voicing bids at as low as $635/mt CFR, signalling bearish sentiments in the market.
Though the local market has been better early this week, there have been no reports about new deals for import billet to China so far, while the lowest offers have been at $670-680/mt CFR. “Traders are holding positions, expecting some further rebound,” an international trading source said.
Rebar futures at Shanghai Futures Exchange have added RMB 122/mt ($19/mt) or 2.4 percent over a day on August 24, closing at RMB 5,235/mt ($808/mt).
$1 = RMB 6.4805