The import billet market in China has remained halted this week with tradable prices for imported billet slipping further, though they have already been below $500/mt CFR. As a result, most major sellers have focused on negotiations with other customers in Asia, Taiwan and Indonesia in particular.
The average local billet price in China has been at RMB 3,815/mt ex-warehouse on August 30, down by RMB 50/mt ($7/mt) over the week. This price corresponds to $491/mt, excluding 13 percent VAT.
“I don’t see any billet interest now,” a trader said. Some market players believe that bids for imported billets are not above $490/mt CFR at the moment, which is said to be the current tradable level versus $490-500/mt CFR last week.
As local rebar and wire rod prices have been on the downtrend last week and early this week too, billet prices have no chances to rebound. Some market players believe that demand for longs will improve from early September, which will support the billet market, while some sources have remained cautious for the future market.
While tradable levels in China have remained below $500/mt CFR, most suppliers, who usually sell to China, Iran and Russia in particular, have been focusing on other Asian countries.
In particular, there has been information about an ex-Iran sale to Indonesia at $510-515/mt CFR last week, slightly below offers reported at $515-520/mt CFR for October shipment last week. Also a deal for ex-Malaysian billet to Indonesia has been rumoured at $558/mt CFR, but this could not be confirmed by the time of publication and most market sources agree that it was either for the special quality or this is a speculation. The tradable price for ex-ASEAN billet in SE Asia is still at $530-540/mt CFR.
Also negotiations by Russian suppliers in Taiwan have been held at $515-520/mt CFR.