"Many Chinese buyers are in the market bidding for steel billet rather than ferrous scrap, especially with lingering concerns over whether the next few cargoes scheduled to discharge in Chinese ports can clear customs checks," a trader in east Asia told Fastmarkets.
Despite the successful arrival of China’s first imported scrap cargo through customs
on January 29, many importers are still hesitant to buy anything above a small tonnage of steel scrap to better understand China’s new import customs procedures for steel scrap, domestic sources told Fastmarkets.
There is particular concern that the import of heavy melting scrap (HMS) cargoes, which Chinese sources do not believe will easily pass through customs, will be of different impurity and classification from domestic standards.
Sellers have taken the opportunity to hike billet offers,...