Chinese customers have continued to book importbilletthis week at higher price levels, preferring ex-Southeast Asianbillet, which can be imported without duty. Moreover, after the futures price surge on Wednesday, March 3, the tradable price levels have moved up further.
Two majorbilletsuppliers from Indonesia and Vietnam have managed to sell one cargo of 20,000 mt each at $605-610/mt CFR toChinarecently, with the last deal at the higher end of the range. This is up by $5-7/mt compared to the previous deals by the same exporters at $600-603/mt CFR reported last week. “The tradable level is $610-615/mt CFR now. But all mills are holding back offers now, seeing sharp futures gains,” an international trader said today, March 3.
Most market sources agree that the current level for importbilletsales from ASEAN countries is at $610/mt CFR, as this level corresponds to the local price level inChina. Mills in Tangshan have increasedbilletprices by RMB 140/mt ($22/mt) today to RMB 4,410/mt ($684/mt) ex-works, including 13 percent VAT, amid announced steel production cuts in the city. In particular, the Tangshan authorities announced that production at seven blast furnaces should be stopped by March 10. Average spotbilletprices inChinahave also added RMB 140/mt to RMB 4,493/mt ($695/mt) ex-warehouse.
Taking the current price level for ex-Southeast Asianbilletat $610/mt CFR, the tradable level for thebilletof other origins, which are subject to 2.5 percent import duty, is $595/mt CFR. Last week, Indianbilletwas traded at around $580-585/mt CFRChina.