China, the world’s largest steel producer, registered billet imports of 4.9 million tonnes (mn t) in the first six months of CY’21 (Jan-Jun’21), down by 6.35% y-o-y compared to 5.27 mn t in Jan-Jun’20, as per customs data collated by SteelMint.
Vietnam takes over Russia to become largest exporter
Vietnam supplied the highest volume of billets to China at 1.32 mn t during Jan-Jun’21. The country turned out to be the largest exporter, outstripping Russia in H1CY’20.Indonesia jumped to the second position among the top exporters’ list in H1CY’21 with 0.85 mn t followed by Iran with 0.73 mn t. Exports from Indonesia saw a massive 136% increase in Jan-Jun’21 while those from Iran were up by 22% y-o-y.
Oman, not in the picture in H1CY’20, however, emerged as a new destination, supplying0.53 mn t of billets to China in Jan-Jun’21.
China’s billet imports up14% in Jun’21
China’s billet imports in Jun’21 stood at 1.18 mn t, up 14.31% m-o-m compared to 1.03 mn t in May’21.
As per SteelMint’s assessment, Chinese billet prices stood at RMB 5,200/t ($803/t), ex-Tangshan, including 13% VAT, on 23 Jul’21, up RMB 20/t ($3/t) d-o-d. On the other hand, bids for imported billets are heard in the range of $710-715/t CFR China.
Outlook
Demand for billets in China is high at present on account of the strictly enforced production cuts. China’s Shandong province issued a notice clearly stating that this year’s crude steel output should not exceed 76.5 mn t , as per media reports. Thus, the Chinese mills are active in stocking up before the rainy season ends, when construction will resume.
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