Suppliers have increased their supply of billets to China. Blast furnace billet sourced from Vietnam is now being offered at $ 460 per ton in China.
“There are no deals on Vietnamese stock this week,” says a Chinese trader. The most recent booking in China was $ 445 a tonne at the end of last week. Shipping from Vietnam to China costs about $ 10 per ton.
According to another Chinese trader, CIS billet is currently being offered at $ 460 per tonne, but adds that no CIS billet deal has been closed either. Indian billet is not currently sold in the Chinese market due to strong domestic demand in India. Import of billets from Vietnam is exempt from 2% import duty, in contrast to products from the CIS countries or India.
Meanwhile, the wire rod market in Vietnam has improved on rising demand.
Hoa Phat, Vietnam’s leading mill, has recently raised domestic wire rod prices by VND 200,000 per tonne (US $ 9) since 31 August. Other domestic businesses also followed suit. The rebar market continues to be weak compared to wire rod. The supply of wire rod is limited, especially the quality of wire drawing, a local trader notes.