Lower rebar futures on Wednesday, July 28, have cooled down the import billet price rise in China. Nevertheless, demand for billet is still there as production cuts have already started in some provinces, sources said.
A contract for ex-Japan billet has been heard at $715/mt CFR China today after this material with the length of is 11.2 meters was offered at $720/mt CFR.
But a number of traders said that bids for 3sp/5sp billet 150 mm have been still at $720/mt CFR. “We see that the market stabilizes,” a trading source said.
New offers from Vietnam have been reported at $700/mt FOB and up to $702-703/mt FOB, so on a CFR basis they are not below $730/mt CFR. Earlier one deal for ex-Vietnam 5sp billet was closed at $725/mt CFR China. Suppliers expect prices will improve more in the near future.
Sources said that some sizable tonnages from the Indian private steel mill have been already traded at the price equivalent to slightly below $720/mt CFR China and new offer level is $725/mt CFR. Also two Indian state-owned producers have closed their tenders this week.
Local billet prices in Tangshan increased by RMB 20/mt ($3/mt) yesterday and were stable today at RMB 5,260/mt ($810/mt) ex-works, which translates to $720/mt, excluding 13 percent VAT.
Rebar futures at Shanghai Futures Exchange have been at RMB 5,658/mt ($871/mt), down by RMB 17/mt ($2.6/mt) from yesterday.
$1 = RMB 6.4929