Expectations of cuts to steel production across China in the second half of 2021 have fueled the country's eager return to the steel billet import market this week, sources told Fastmarkets on Friday July 9.
Numerous Chinese steelmakers were now
expected to reduce output in the second half of the year, with China's authorities targeting 2021 steel production below last year's total of 1.07 billion tonnes.
China produced 473.10 million tonnes of crude steel in the first five months of 2021, up by 13.9% year-on-year, so production levels were likely to be squeezed across the country for the rest of the year to try to comply with the target.
The news was a welcome boost for imports of steel billet into China, sources said, given that steelmakers can use billet to roll long products while simultaneously reducing their liquid steel production.
"China has started buying billet from Vietnam, and the futures movements have been strong. Lots of deals for billet were done and the price is shooting up again," a Singaporean trading source said.
"There will be a 30% production...