According to market sources, prices for imported billet in China have reached a new high in recent bookings. The situation in China is being closely watched by market participants as it is the major driver of the uptrend in the global market at the moment.
A deal for ex-Vietnam billet has been heard at $403/mt FOB or $410/mt CFR China this week, which is about $8/mt above the previous transaction done late last week by the same supplier. A Vietnamese mill has decided to increase offers to $407/mt FOB as its allocation is limited. Southeast Asian sellers do not have import duties at two percent as other exporters out of the region.
The workable level for non-Southeast Asian origin billet has increased to $400/mt CFR. A contract for a medium volume from India has been signed at this level recently, sources have said.
Average local billet prices in China have increased by RMB 22/mt ($3.11/mt) today, June 3, to RMB 3,375/mt ($475/mt) ex-warehouse, while the price level for billets in Tangshan has reached RMB 3,330/mt ($469/mt), up by RMB 20/mt compared to yesterday.
