Power concerns, Evergrande worries hobble demand for imported billet in China

Chinese demand for steel billet imports has fallen away in recent days, amid mounting concerns over China’s property market and the potential for power shortages across the country, sources told Fastmarkets on Tuesday September 28.

Some market participants fear that the debt crisis engulfing major property developer Evergrande could have a wider knock-on effect on the Chinese construction sector, while others believe that demand for imported billet is being constrained by rolling mill shutdowns caused by widespread Chinese power shortages.
China has not purchased any import billet cargoes since deals were done at $710-715 per tonne cfr in the middle of last week for Indonesia-origin 150mm blast furnace (BF) billet, sources said.

Indonesian 150mm BF billet was on offer at $715 per tonne cfr China on Tuesday, sources said, down from $720 per tonne cfr last week. And Vietnam-origin 150mm BF billet was still available for October shipment...

Published

Lee Allen

September 28, 2021

12:42 GMT

London