The situation in the Chinesebilletmarket has remained unfavorable for overseas sellers as, even after some brief revival in local prices seen over the past week, sentiment has become pessimistic again.
Local mills in Tangshan have lowered their prices by RMB 30/mt ($5/mt) since Thursday, November 25, to RMB 4,290/mt ($672/mt) ex-works, translating to $595/mt, excluding 13 percent VAT. Demand for rebar is unlikely to improve in December due to seasonal factors, and even lower production due to the recently announced measures is unlikely to provide significant support.
The average ex-warehouse price level forbilletinChinahas been at RMB 4,383/mt ($687/mt), according to SteelOrbis’ data, and, even though this is RMB 83/mt ($13/mt) higher on week-on-week, it is slightly lower (by RMB 17/mt) from last Thursday.
The highest tradable level for importedbillethas been assessed at $610-615/mt CFR for Jiangsu, where ex-warehouse prices are at RMB 4,490/mt or $623/mt, excluding 13 percent VAT. While in Tangshan, for instance, the tradable level is still mainly below $600/mt CFR. “I doubt imports will resume as the offer-bid gap is too big,” a trader said.
The SteelOrbis reference price will remain stable on average at $590-610/mt CFR for now, reflecting the buyers’ price ideas, while the lowest offers have been reported at $630/mt CFR. Major Southeast Asian mills have been offering at $660-670/mt CFR early this week.