At least two cargoes involving close to 80,000 tonnes of Indian billet and 55,000 tonnes of Russian billet were booked at $395-400 per tonne cfr China after the country’s October 1-7 Golden Week to commemorate its 70th National Day.
“The major buyers are re-rolling mills in Jiangsu province who booked these cargoes for rebar production,” a trader in the region where the province is located said.
The ex-works prices of major mills in Jiangsu for the semi-finished steel product were at 3,470-3,530 yuan ($491-499) per tonne on Monday October 14, a billet trader in the province said.
This means there is a price spread of $37-39 per tonne once a 13% value-added tax and 2% import duty to sell the cargoes into the domestic market are taken into account.
A wider price spread is possible for transactions involving Iranian billet, which is often sold at...