SteelOrbis Shanghai The price increase in international markets supported the demand for Chinese billets and slabs. Both Chinese steelmakers and traders got many inquiries from foreign countries. The export volume picked up and Chinese export prices increased by $10-15/mt. Chinese steel market saw an overall upward trend after the Chinese New Year Holiday. However, long product prices such as
rebar have been in a weak stable trend. The inventory, which piled up during the holiday could not be depleted despite the increase in the commercial activity. The price trend of long products suppressed the recovery of
billet market, but it supported the export prices of semi finished products. On the other hand, semi finished prices in Hebei Province saw a downward trend after a dramatic price increase, while those in other regions remained relatively stable. By the close of
trading on Wednesday, February 22, the common carbon
billet price in Tangshan, Hebei Province dropped RMB 10/mt ($1) to RMB 2,540/mt ($316), while that of 20 MnSi dropped RMB 20/mt ($2) to RMB 2,600/mt ($323). Prices in other regions were stable and stood at the levels in the previous week. Recently, semi finished market prices in Tangshan changed frequently. In latter part of last week,
semis prices kept going up with common carbon
billet price at the highest level of RMB 2,600/mt ($323). Later, due to the fall in strip steel prices, a certain
semis producer cut its ex-factory price to RMB 2,500/mt ($311), aiming to clear its inventory. Moreover, other producers cut their prices too. After the price reduction, the commercial activity picked up. In addition, prices of finished steel, including that of strip steel, were gradually stable. This strengthened steelmakers' confidence and in turn led to an end for
semis price fall. Generally speaking, it's difficult for
billet prices to go up in the short term before long product market gets better. However, the upward trend is possible in the long run.