According
to market sources report to SteelMint, China has booked around 44,000 MT billet
from Iran this week. The deal value was reported to be USD 390/MT FoB Iran for
which landed price would come around USD 440-445/MT, CFR levels
Earlier
this month also, China had booked around 200,000-300,000 MT from Qatar and Iran
at USD 440-450/MT CFR.
This
week Iranian billet export offers reported identical as last week; USD
390-395/MT, FoB. The country’s export market sentiments remained supported on
the back of a deal to China.
The
prime reason for China importing billets is government of China has imposed
environmental restrictions on blast furnace production. To fill this gap left
by billet production cuts of BF grade, Chinese steel manufacturers have now
start importing billets from Qatar & Iran.
There
were talks yesterday that Tangshan has drafted a plan to extend anti-pollution
production curbs throughout August.The Tangshan Ecology and Environment Bureau
have reported to the municipal government to issue the “Intensified Management
and Control Plan for Air Pollution Prevention and Control in the City in
August”, which will limit the production of the steel industry up to 50%, and
take effect from August 1 to August 31.
Yesterday,
China’s domestic billet prices in Tangshan was assessed at RMB 3,640/MT
(including 13% VAT) which would come around USD 530/MT.
Source:
Steel mint