Chinese steel billet imports, which hit a record high 1.53 million mt in June, have yet to peak, as market participants expect volumes to rise in the coming two months. Chinese buyers have, however, slowed from making new purchases since July due to the shrinking gains from arbitrage, with some seeking cheaper induction furnace billet as an alternative to those produced in blast furnaces.
India and Russia were the two biggest contributors to China's billet imports from January to June 2020, replacing Malaysia and Qatar, which had exported the largest volume in 2019. India exported the highest volume of billet to China in June at 0.68 million mt, followed by Russia and Iran at about 284,000 mt and 185,000 mt, respectively.
In the meantime, market players believe that billet imports will hit a new peak in either July or August as more deals are concluded.
“Billet import volume in terms of arrival date would reach 2 million-2.5 million mt per month in July and August, with a total quantity of 3 million-3.5 million mt per month including slab,“ an eastern Chinese trader said.
“Total import volume for billet and slab is estimated at 10 million mt through June to August,” three Chinese traders said.
-- Analyst Joy Zhuo
Source : Steel Business Briefing
