Localbilletprices inChinahave improved visibly this week amid rising futures prices, better demand for rebar, and higher costs. As a result, the tradable price level for imported material has also risen, but the gap between offers and bids has remained fairly big, resulting in no activity.
Market sources said that there have been buyers’ indications at $600/mt CFR, up by $15/mt over the past week from $570-600/mt CFR last week, according to SteelOrbis. The tradable levels in different regions were up or down around $10/mt from this level, depending on the local price levels. But “even if someone bids at $610/mt [CFR], I doubt they will find a seller,” a source said.
Offers from Southeast Asianbilletsuppliers for 150 mmbillethave been at around $650-660/mt CFRChina. Even if some producers are ready to provide $640-645/mt CFR, recently fixed in deals to Taiwan, this level is still too high for the Chinese market.
“Thebilletprice is on a positive trend, but we need to see one more week to ensure that Chinese demand really starts to come back. The iron ore price has rebounded to above $100/mt CFR,” a Southeast Asian trader said. “Many distressedbilletcargos were sold out (at loss),” he added.
Mills in Tangshan have increased prices to RMB 4,320/mt ($675/mt) ex-works, up RMB 140/mt ($22/mt) compared to the middle of last week. This price translates to around $597.5/mt, excluding 13 percent VAT. Moreover, the average ex-warehouse level, according to SteelOrbis information, has reached RMB 4,400/mt or $609/mt without VAT.