Suppliers have increased billet prices for the Chinese market amid the global price improvement and some hike has been fixed in a few contracts. The better situation in the local market has supported the import billet price rise, but a further increase in the near future is questionable.
A deal for 15,000 mt of Indian billet has been concluded at $370/mt CFR China recently, up by $11/mt from the previous booking of the same origin material to this destination. Moreover, some small tonnage of Russian billet has been traded at $375-380/mt CFR.
Customers have accepted an increase amid the gradual increase in rebar and billet prices in the local market, but the workable level for medium volumes is still not higher than $370/mt CFR China, sources said. After the latest deals, major Indian mills have increased offers to $380/mt CFR. CIS-based suppliers have been asking even higher prices - up to $390/mt CFR, as most of them have closed their order books for June shipment. “These prices are meaningless. The right price level is $370/mt CFR, but all offers are higher now,” a Chinese trader said. “For billets, anything above $370/mt CFR does not make sense, unless traders are going long,” another trader said.
Further developments in the import billet market in China will depend on the situation in the local market. Sources believe that imports may continue if local prices keep going up and if the gap between local and import prices remains.
