Posted on 04 Sep 2020
Suppliers have hiked offers for billet to China, Kalllanish notes. Vietnamese blast furnace billet is now offered at $460/tonne cfr China.
"There are no deals this week for Vietnamese billet," a Chinese trader says. The last booking took place at $445/t cfr China late last week. Freight from Vietnam to China is at around $10/t.
CIS billet is currently offered at $460/t cfr, another Chinese trader says, but adds that no CIS billet deal has closed either. Indian billet is currently out of the Chinese market because of strong domestic demand in India. Vietnamese billet imports are exempt from a 2% import duty, unlike CIS or Indian product.
Meanwhile, the wire rod market has improved in Vietnam due to better demand, Kallanish notes.
Vietnam's leading mill, Hoa Phat, recently hiked its domestic wire rod prices by VND 200,000/t ($9) effective 31 August. Other domestic mills have also followed suit. The rebar market continues to be weak though in comparison with wire rod. Supply of wire rod is tighter, especially wire-drawing quality, a local trader notes.
Source:Kallanish
