Rising buying activity and rapidly increasing billet prices in the Chinese market have pushed up the sales realizations of Vietnamese billet exporters. Most sellers believe that some additional rise is possible in the near future even despite the decline in rebar futures prices in China, today, April 7.
The latest deal for ex-Vietnam 3SP billet has been confirmed at $628/mt FOB and the freight has been estimated by market sources at $30/mt, and so the CFR China final price is at $658/mt CFR, SteelOrbis has learned. This was signed early this week, according to sources. “The market is good now. Demand from China is booming,” a trader said.
Moreover, the main Vietnamese producer is expected to offer at $640/mt FOB this week, or at around $670/mt China. Two producers, from Malaysia and Indonesia, are asking the same prices at the moment.
This level could be achieved soon, sources said, mentioning that demand is strong, even though some pause in activity can be seen in China following the recent decline in futures prices. Rebar futures at Shanghai Futures Exchange have lost RMB 22/mt ($3/mt) today, coming to RMB 5,117/mt ($784/mt). “Lower futures means that traders will stop bidding higher [for import billet],” a trader commented.
Nevertheless, some further increase has still been seen in the spot billet market in China. Steel mills in Tangshan have increased prices by another RMB 20/mt ($3/mt) today to RMB 5,060/mt ($776/mt) ex-works on April 7. Stockists’ average billet price in China has increased by RMB 10/mt ($1.5/mt) today to RMB 4,963/mt ($761/mt) ex-warehouse, including 13 percent VAT.