China: Billet import prices edge up on improved demand

Billet import prices into China moved up w-o-w in recent round of deals concluded from Vietnam and the Middle East, as per SteelMint's assessment.

Earlier this week, a Vietnam-based mill concluded an export deal for 20,000 t of blast furnace-route billets at $660/t FOB (equivalent to $690/t CFR China). Another deal for the Middle East-origin billets was also heard to be concluded at $695/t CFR China recently.

These prices rose further by $10/t in deals concluded recently from Vietnam, SteelMint learnt from sources. A leading Vietnamese steel mill concluded an export deal for 20,000 t of blast furnace billets at $665/t FOB (equivalent to $700/t CFR China).

Factors supporting price hike -

• Increase in China's domestic billet prices by RMB 100/t: Steel billet prices in China's Tangshan rose by around RMB 100/t ($15.5) on a weekly basis and by RMB 40/t ($6/t) d-o-d on 7 Sep'21. Prices of domestic billets stood at RMB 5,120/t ($793/t), inclusive of 13% VAT.
  
  
• Re-rollers resuming production: Prices edged up on improved buying inquiries from re-rollers as they resumed production after meeting environmental standards.
  
  
• Rise in rebar futures: According to data maintained with SteelMint, the Chinese rebar futures contract for Jan'22 delivery closed today, 8 Sept'21 at RMB 5,452/t ($844/t), a w-o-w increase of RMB 210/t ($35.5/t).