The billet imports in China, during Aug’20, have reached 3.15 mn t from 2.46 mn t in Jul’20, registering an m-o-m rise of 28%. Russia, India, Vietnam, Iran, and Malaysia stood as the prominent billet suppliers for the month. The high domestic billet prices and cheap global offers have driven the imports in the country.
The imports from Russia and Iran have increased sharply during the period. Russian imports stood at 0.7 mn t (up by 46% m-o-m) while Iranian imports recorded at 0.54 mn t (up by 283% m-o-m). Amid sluggish demand from domestic and regular export markets of these nations (Russian and Iran), backed by strong Chinese buying interest has raised the Russian and Iranian imports in the country.
This has resulted in a drop in imports from Vietnam (down by 30% m-o-m) and Malaysia (down by 6% m-o-m). High export prices from these nations (Vietnam and Malaysia) have also supported the event.
Similarly, on improving realizations in the domestic and Nepal market, Indian mills have shifted their focus from the ocean market, leading to an 18% fall in Indian imports in China during Aug’20.
Outlook – We expect Indian billet export volumes to fall further in the coming months, considering limited allocations for exports due to improved domestic demand. However, import outlook from other destinations is scattered.
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