China, the world’s largest steel producer, recorded billets import of 1.34 million tonnes (mn t) in Sept’21, up by 41% m-o-m as compared to 0.95 mn t in Aug’21, as per customs data collated by SteelMint.
Steel production curbs since the past few months amidst the sudden rise in domestic prices drove the mills to explore import options, SteelMint understands.
Vietnam leading exporter
Vietnam, surpassing Iran, turned out to be the largest exporter of steel billets to China at 0.39 mn t in Sept’21, witnessing a noticeable increase of 225% m-o-m as against 0.12 mn t in Aug’21.
Indonesia occupied the second position in the top exporters’ list in Sept’21 with 0.19 mn t followed by Oman with 0.18 mn t, a huge m-o-m increase of 137% and 157%, respectively.
China’s billet imports down y-o-y in Jan-Sept’21.
Imports of the material into China stood at 8.12 mn t in Jan-Sept’21, a significant decline of 40% y-o-y as against 13.57 mn t in Jan-Sept’20. Considering y-o-y, Vietnam was the largest exporter of steel billets with 1.93 mn t followed by Indonesia and Iran with 1.24 and 1.15 mn t, respectively.
Price trends
SteelMint’s assessment for China’s imported billet (150*150mm, 3SP) prices fell to $659/t CFR levels in end-Aug’21 from $717/t CFR levels in end-Jul’21.
Outlook
The near-term outlook remains bearish as Chinese steelmakers are likely to be in a wait-and-watch mode in the upcoming days due to declining Shanghai Futures Exchange (SHFE) rebar prices.
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