China has continued to import billets actively after the labor day holidays. China was reported to book approximately 175,000 MT billets from Russia, Ukraine, and Kazakhstan at an average price of USD 370/MT, CFR. This shows that billet import offers are at the same levels as the previous week. However, marketers were expecting that prices would witness a hike, post-labor holidays at the beginning of May’20.
Although, Indian mills are learned to have increased the offers to USD 380/MT, CFR after aggressive bookings, and due to the congestions at the Chinese ports. Also, last week India has booked around 30,000 MT billets at USD 378/MT, CFR, and post this the country has increased its offer.
The domestic billet prices in China are on a continuous rise and is currently at RMB 3,140/MT, ex Tangshan, inclusive of all taxes.
Future outlook: The billet import offers in China are expected to increase in the near short term due to the continuous increase in domestic billet prices supported by increased domestic scrap prices in the country.
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