Local billet prices have decreased further on Monday, August 16, following a visible drop in rebar futures prices, transportations issues, and weak demand. As a result, bids for import billet have been limited.
Local billet prices in Tangshan have lost RMB 50/mt ($7.7/mt) from late last week, coming to RMB 5,040/mt ($779/mt) ex-works. This level corresponds to $689/mt, excluding 13 percent VAT.
At the moment, market sources do not see the tradable level above $680/mt CFR China, versus $690/mt CFR maximum last Friday. “Rebar futures are falling, so billet imports will be halted for now,” a trader said.
Early last week, deals for ex-ASEAN billet were done at $700-710/mt CFR in China. At the moment, the most competitive offers are mainly at $700-705/mt CFR, without a response from buyers.
On August 16, rebar futures closed at RMB 5,328/mt ($823.5/mt) at Shanghai Futures Exchange, down by RB 114/mt ($18/mt) or 2.1 percent compared to Friday.
$1 = RMB 6.4717
