Bids for import billet have remained weak in the Chinese market even despite the recent improvement seen in rebar futures prices in China. Market sources believe that import activity will be reduced in China by the end of this month.
Steel mills in Tangshan have increased their billet prices by RMB 20/mt ($3/mt) today, June 10, reaching RMB 4,980/mt ($778.5/mt) ex-works. This level translates to $689/mt, excluding 13 percent VAT. Prices in the local market in China have been showing some gradual improvement amid the better situation in the rebar segment, where both spot and futures prices have increased on June 10.
Rebar futures at Shanghai Futures Exchange have posted a 2.7 percent or RMB 135/mt ($21/mt) hike today, closing at RMB 5,168/mt ($808/mt).
Such a sharp rise in futures prices have supported the sentiment in the billet market, but bids for import billet have not increased much. At the moment, the tradable level is at $670-680/mt CFR, according to sources, posting minimal changes from $670-675/mt CFR reported on Monday this week. Market sources see just moderate demand for local billet in Tangshan and believe that prices will not show such sharp fluctuation as in May.
A major Vietnamese supplier has increased its offers to $720-730/mt CFR to China after deals reported late last week. But there are still some lower levels available from other BF billet suppliers at $695-700/mt CFR.
$1 = RMB 6.3972