China has returned to the import billet market after the long holiday and, in line with expectations, prices have increased. Some volumes of ex-Vietnam billet have already been purchased at higher prices, but negotiations continue.
According to sources, in total 30,000 mt of billet from the main Vietnamese seller has been sold at $565/mt FOB recently, which translates to around $575/mt CFR. Some negotiations have been taking place at $560/mt FOB or $570/mt CFR. As SteelOrbis reported earlier, just before the holidays two lots of ex-Vietnam billet were traded at $547-550/mt CFR. And the highest tradable value for billet from Southeast Asia reached $555/mt CFR before Chinese buyers left for the New Year holiday.
Most offers, from Indonesia, in particular, are coming to China at $580/mt CFR, though there has been no information regarding any deal.
Some import transactions for ex-India billet are expected to be done to China soon, according to sources. The workable price level for non-Southeast Asian billet has increased to $555-560/mt CFR in the current market conditions, while it was close to $535/mt CFR before the holidays.
Higher prices in the local billet market in China and the sharp increase in raw material prices have been pushing traders to check import billet opportunities. The price level for domestic billet in Tangshan has reached RMB 4,080/mt ($634/mt) ex-works on February 18, up by RMB 190/mt ($29.5/mt) since February 1.