Shanghai SteelOrbis
Thanks to brisk business activities, Chinese semi finished steel prices kept going up by a large scale throughout last week, which –on the other hand- brings some obstacles to the exports market.
At the end of Wednesday, March 8, common carbon
billet price in Tangshan, Hebei Province was RMB 2,750/mt ($342), and that of 20 MnSi
billet was RMB 2,800/mt ($348). Both prices were up RMB 150/mt ($19) weekly. Prices in other regions also saw some increases.
With the upward trend in Chinese steel market, many rolling mills resumed
production one after the other, driving up the demand for semi finished steel. Many
semis producers have full
production tasks until the end of April, encouraging them to keep raising their ex-factory prices. The small increase range of
rebar prices caused to just a fractional increase for 20 MnSi
billet orders. At present,
semis producers concentrate on producing common carbon billets used for
wire rods.
Nevertheless, the sharp increase in domestic
semis prices make exports difficult. Based on the current
semis ex-factory prices, offers at Tianjin Port are at $364/mt FOB or above. At present, steel mills in
Southeast Asia have not yet accepted this level, leading to few bookings. Nevertheless, the prices in international
semis market is also in an upward trend with large increase ranges, leaving some shares to
China in the export market.
Since the price range during the last week is sharp, and due to the end of the upward trend for recent finished steel prices, Chinese
semis prices are expected to be stable nowadays.