China: Billet imports fall by 44% m-o-m in Oct'20

The billet imports in China during Oct'20 dipped sharply by 44% to 1.5 mn t. Vietnam, India, and Russia continue to remain the predominant suppliers to China during the period under consideration. However, the imports from these nations saw a significant drop, on reasonable Chinese domestic prices supported by improving domestic market of these nations, especially India.

During Aug-Oct'20, the average domestic billet prices in China dropped by RMB 38 ($6). From RMB 3,419/t in Aug'20 to RMB 3,381/t in Oct'20, Ex-Tangshan, including 13% VAT. While on the other hand, the import prices, during the period (Aug-Oct'20), increased by $23 to reach $504/t, including 2% duty and 13 % VAT.

The hike in global billet prices was supported by strongly supported by continuous rising global scrap prices. During the period, the imported scrap prices in Turkey reported having increased $13 to reach $293/t, CFR.

Outlook: Trade sources expect Chinese billet imports to remain active from Vietnam in the coming month. However, volumes from India may fall further on limiting export allocations.