Positive sentiment has prevailed in the Chinese market by the end of this week and importbilletprices have increased further by Friday, with another deal signed at a higher price level.
Another 30,000 mt of ex-Vietnam 5SPbillethave been booked by one of the largest Chinese traders at $668/mt FOB on the night of Thursday, July 9, with the freight assessed at $28/mt minimum and this price corresponding to $696/mt CFR. The previous transaction of the same producer was $11/mt lower earlier this week. “Buying inChinais quite aggressive again,” a trader said, as fears of big crude steel production cuts in the second half of the year have persisted in the market.
There are rumours in the market that the new target of the Vietnamese seller is at $675/mt FOB and negotiations are ongoing, though some sources believe that even $690-700/mt CFR seems the overpriced level as for now. Steel mills in Tangshan have held localbilletprices stable today at RMB 5,020/mt ($775/mt) ex-works, which corresponds to $686/mt, excluding 13 percent VAT. But traders believe that import prices have been supported by expectations that demand will persist next week and bids for importsemiswill be stronger.
Offers for IFbillet, which is not popular inChina, have also increased - by $10/mt to $670-675/mt CFR by the end of the week.
In addition, today one of the major Indian state-owned mills has closed a 30,000 mtbillettender, and, though the outcome has not been finally confirmed by market sources, today the company increased the allocation to 60,000 mt for export, with the targeted destination expected to beChina.
$1 = RMB 6.4755