SteelOrbis Shanghai
Chinese steel output reached to a new record level in March 2006, while semi finished steel exports decreased 79.4 percent year on year. Chinese semi-finished steel export prices saw a rapid increase, while the transaction volume saw a decline due to high prices last week.
China exported 300,000 metric tons of semi finished steel in March, down 79.4 percent from a year earlier, while the imports were 50,000 metric ton, down 64.2 percent compared to 2005. The cumulative export of
semis in the first quarter was 890,000 metric tons, down 69 percent year on year, while the cumulative imports of
semis was down 74 percent to 100,000 metric tons.
As the
semis prices in the international market have kept increasing, offers for common carbon
billet in Black Sea from the
CIS countries reached $380-390/mt FOB. The deal price of a batch of Chinese 20MnSi
billet exported to Vietnam was at $400/mt FOB last week. In recent days, offers for Chinese Q235 billets for export to
Southeast Asia are at $400-405/mt CFR. But as the price level has not yet been accepted by customers in
Southeast Asia, most traders hold “wait-and-see” attitudes.
Having increased continuously in April, Chinese
semis prices are now at a relatively high level. The rolling mills are becoming more and more cautious, and they are not very eager to place new
slab orders. In addition, the
rebar producers are not active in buying billets as the
rebar prices failed to get in an upward trend.
The
production tasks of
semis producers are full until mid-May, and it is unlikely for
semis prices to decline in the short term. Chinese
semis prices may remain stable in the following week.