China’s billet bids retreat by end of week, latest ex-India tender closed higher

Friday, 13 August 2021 16:53:50 (GMT+3)   |   Istanbul
       

By the end of this week, the sentiment in China’s import billet market has become more bearish again due to the weakening of the rebar market, the spread of Covid-19, and rising freight rates.

Most bids for import billet have been heard at $690/mt CFR on Friday, down from deals at $700-710/mt CFR done by Wednesday this week. Lower bids have been due on the one hand with the unstable situation in the rebar market and the decline in futures prices. As of today, August 13, rebar futures at the Shanghai Future Exchange closed at RMB 5,482/mt ($846/mt), down by 0.9 percent or RMB 49/mt ($7.6/mt) on the day. But on the other hand, traders have been citing transportation issues among the main factors limiting billet imports. According to the new rules, all ships entering China will have to wait for 14 to 21 days due to the new quarantine requirements for vessels, and this is leading to rising queues at ports and increasing charges.

Despite the abovementioned issues, the latest tender from an Indian state-owned company for 30,000 mt of 150 mm billet was closed at $625/mt FOB, with the trader expecting to sell this material to China later. “This price seems quite aggressive, considering $75-80/mt freight,” a trader said. “This FOB price would be $705/mt CFR for China, too high for now, but let’s see,” another source said, adding that, even despite the current increased freight and charges for waiting to enter Chinese ports, some market sources are still expecting more healthy conditions in China in September-October, which will help to absorb costs.

Local billet prices in Tangshan have softened today by RMB 20/mt ($3/mt) to RMB 5,090/mt ($785.5/mt) ex-works, which corresponds to $695/mt, excluding 13 percent VAT.

$1 = RMB 6.4799


Similar articles

No halt to downtrend in SE Asia’s import billet market, more traders going short

28 Mar | Longs and Billet

Ex-Asia billet offers become more affordable in Turkey, market slightly optimistic

27 Mar | Longs and Billet

Ex-India billet prices stable, but buyers try to push below $490/mt FOB

27 Mar | Longs and Billet

Ex-ASEAN billet sales continue at low prices, China turns negative again

26 Mar | Longs and Billet

Global View on Billet: Better sentiments, suppliers fail to achieve higher deal prices so far

22 Mar | Longs and Billet

Turkey’s Kardemir issues planned sales volumes for April-June

22 Mar | Steel News

Import billet prices in SE Asia hit new low, trend reversal anticipated

21 Mar | Longs and Billet

Domestic billet sales livelier in Turkey, import price range narrows amid limited allocation

21 Mar | Longs and Billet

Ex-India billet sellers ready to accept lower prices to push sales amid weak local conditions

20 Mar | Longs and Billet

India’s RINL floats export tender for 30,000 mt billet for end-April shipment

20 Mar | Longs and Billet