China's demand for imported billet could shrink in the coming months due to a surge in supply that could cause domestic spot prices to fall and make them more attractive to buyers.
While large tonnages were delivered to the country over the past couple of months, market participants do not expect imports to continue at the same pace over the rest of the year. In June, China imported 110,000 tonnes of billet, including products that were produced via just casting and those that were cast and forged, according to Chinese customs data. While these are about the same as May's imports, they are 6.7% higher year on year. June's imports are also 37.5% higher than January's 80,000 tonnes, according to the data. Narrowing price gap Imported billet will lose its price advantage if domestic prices for the semi-finished steel product fall further, a trader in Hangzhou said.Domestic prices for billet have been falling recently.In eastern China, a region that buys...