Today, September 14, the Chinese billet market has shown signs of decreases after a sharp fall in rebar futures prices, following price declines in the coke segment, and the worsening of construction steel demand in the east of the country due to typhoon Chanthu.
Rebar futures at Shanghai Futures Exchange have dropped by RMB 198/mt ($31/mt) or 3.5 percent today, closing at RMB 5,492/mt ($851/mt). This is always a bad sign for the billet market and all major importers of billet in China have taken a step back from the market following it. Market participants have said that at the moment bids would be only at $705-710/mt CFR, down from the trade prices at $720/mt CFR late last week.
A lack of import billet offers has been heard today as most large suppliers have been watching for further developments in China. Some offers, excluding those from ASEAN countries, have been reported at $715-725/mt CFR, almost in line with the level on Monday.
SteelOrbis has learned of an offer of an ex-Iran billet at $680/mt CFR to China today.
The local billet prices in Tangshan have slipped by RMB 30/mt ($4.6/mt) today to RMB 5,220/mt ($809/mt) ex-works. This level translates to $716/mt, excluding 13 percent VAT.
After a rally seen last week, the market has fallen today in many steel segments in China. Market sources have been naming a few reasons for this. Rebar futures have been negatively affected by the setbacks in coke. Coke futures at Dalian Commodity Exchange have lost 5.3 percent today, falling for the third day in a row. Concerns about the government to control coke prices after their sharp gains at the beginning of September have changed previously positive sentiments.
In addition, at the weekend typhoon Chanthu hit eastern China, and steel demand and transportation remain interrupted late on Tuesday.
$1 = RMB 6.45