Despite bearish sentiments in the local Chinese rebar market and lower spot prices, customers in the south of the country have been sending inquiries for purchases of import billet. However, bids are low.
This week, there have been reports of an inquiry for 30,000-40,000 mt of steel billet from a customer in the southeastern Chinese province of Fujian. At the same time, offers for ex-Iran billet have been heard at $420/mt CFR China, while the tradable level for ex-CIS billet will be closer to $440/mt CFR.
Import billet purchases have been less active starting from the beginning of December as the local market in China has showed signs of weakening. On Thursday, December 12, the average billet price in China has come to RMB 3,543/mt ($504/mt) ew-warehouse, down RMB 20/mt ($3/mt) week on week. However, local billet prices have been higher in the southeastern part of China.
Bids for import billet in China are at $420-425/mt CFR, according to sources, because this price range, including import tax and 13 percent VAT, is at least $30/mt lower compared to local prices in the southeast of China.