Chinese iron ore and steel futures recorded steep declines yesterday as government intensified efforts to rein in the surging raw material prices. The SHFE rebar futures contract for Oct ’21 decreased sharply by RMB 123/tonne ($19/t) d-o-d to close at RMB 5,186/t ($806/t), while the domestic billet prices in China recorded a significant fall of RMB 170/t ($26) d-o-d, and were reported at RMB 5,300/t ($824/t) in Tangshan, including 13% VAT.
China’s buying interest for imported billets has turned muted and traders are seen diverting their positioned cargoes to SE Asia markets or are being offered at lower prices, SteelMint understands.
An Indian state-owned steel mill sold 30,000 t blooms (150x150mm, 3SP/4SP) through a spot export tender in the price range of $655-658/t, FoB for a non-Chinese destination.
IF route billet offers have dropped by $10-15/t (w-o-w) to $580-585/t, exw Durgapur (Eastern India), equivalent to $605-610/t CPT Nepal, delivery via road.
SteelMint’s billet index has been assessed at INR 42,200/t (+100) exw Raipur on 20th May. The index rose slightly on improved demand, however trade volumes remained lower than expectations.
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