Offers for imported billet in China have increased further after a number of deals earlier this week. Higher prices could be accepted next week, market sources believe, if local prices continue to rise.
New offers for ex-Indonesia and ex-Vietnam have been reported at $720-725/mt CFR in China by the end of the week.
Earlier this week, bookings for 40,000 mt in total of billet from these countries were done at $705-707/mt CFR, as SteelOrbis reported on July 14. Russian billet was sold at $707/mt CFR China. Two mills from India traded at least 50,000 mt of 15 mm billet in total with the final destination being China, at $700-705/mt CFR, also early this week. In addition, ex-Iran materials were booked from a trader at $690-695/mt CFR. An ex-Japan 3SP EAF billet sale was confirmed at $690/mt CFR to China just at the beginning of the week. Among IF billet sales, the latest deal for ex-Thailand IF billet was done at $670/mt CFR.
Following these numerous deals, higher offers from suppliers seem “very expected,” even though the tradable price level in China is at $705-710/mt CFR now, according to SteelOrbis’ information.
Local billet prices in Tangshan were standing at RMB 5,160/mt ($797/mt) ex-works, up by RMB 20/mt ($3/mt) today, Friday, which corresponds to $706/mt, excluding 13 percent VAT.
News about expected five percent export duty on billet in Vietnam has been actively discussed in the market. This may lead to the reduction of the presence of Vietnamese mills in the export market as they will try to increase prices or make buyers carry the risks. At the same time, the price in China will depend mainly on local price levels, and so importers may prefer material of other origins, which may be available at more attractive levels. But “now we have only expectations. Let’s wait for the official announcement. It may take some time,” a local source said.
$1 = RMB 6.4705