In October 2020, imports of billets to China fell sharply by 44% to 1.5 million tons. Vietnam, India and Russia continue to be the dominant suppliers to China during the period under review. However, imports from these countries fell significantly due to reasonable domestic prices in China, supported by the improvement in the domestic market of these countries, especially India.
Between August and October 20, the average domestic billet prices in China fell by 38 yuan ($ 6). From RMB 3,419 per tonne in August 2020 to RMB 3,381 per tonne in October 20, ex-Tangshan, inclusive of 13% VAT. On the other hand, import prices for the period (August-October 2020) increased by $ 23 to $ 504 per ton, including a 2% duty and 13% VAT.
The growth in world prices for billets was facilitated by a steady rise in world prices for scrap. During this period, prices for imported scrap in Turkey rose by $ 13 to $ 293 per tonne, CFR.
Outlook: Trade sources expect imports of Chinese billets from Vietnam to remain strong in the coming month. However, volumes from India may be further reduced due to export restrictions.
