FOCUS: Steel billet exporters set to benefit from rising prices, duty changes in China

Rising steel billet import prices in China and last week's elimination of the country's import tax on billet are set to provide a large boost for exporters of the semi-finished product, sources told Fastmarkets on Wednesday May 5.

Until May 1, Chinese importers had to pay a 2% import duty on billet produced outside the Association of Southeast Asian Nations (Asean). This meant that steelmakers from outside of the Asean region had to price their product 2% below Asean producers to remain competitive in the Chinese market.
In the week to April 23, for example, Indian blast furnace (BF) 3sp billet was bought at $648 per tonne cfr China, while Indonesian BF billet was bought at $660 per tonne - nearly 2% higher.

Asean billet was then sold at $675-685 per tonne cfr China, while a deal for non-Asean billet was next heard concluded at $670-675 per tonne cfr last week. And 30,000 tonnes of Indian BF billet was heard sold to traders at $628 per tonne fob on Tuesday, which sources said would be around $675-680 per tonne cfr China after freight...


Lee Allen

May 05, 2021

09:05 GMT