Slight rebound for Chinese semi-finished prices
Billet prices in Tangshan and Liaoning rebounded slightly over the past week, while those of other regions were basically stable.
Compared to the previous week, by the close of
trading on Wednesday, November 16, the common carbon
billet price in Tangshan, Hebei Province, was up RMB 20/mt ($2) to RMB 2570/mt ($318); 20MnSi price was unchanged at RMB 2600/mt ($322).
Some semi-finished producers failed to capitalize during the price jump in late October since few transactions actually took place. Therefore, steelmakers have adopted a more cautious attitude as of late, which led to a mild increase this past week and healthy market conditions.
According to Hebei Province-based Chengde Jianlong Iron and Steel Company (Chengde Jianlong Steel), conditions are currently good for semi-finished export. Chengde Jianlong Steel exported 20000 metric tons of common carbon
billet not long ago. At present, it is producing 10000 metric tons of products to export to
Southeast Asia at $338/mt.
Meanwhile, the recent stable finished steel market boosted finished steel producers confidence and stimulated their purchasing desire. The stable market also drove up commercial activities.
The low
wire rod and
rebar inventory in both steel mills and the market is expected to leave room for a short-term price increase. This could push up
billet prices as well. However, hot rolled sheet/coil and medium
plate prices might decline.
As winter is approaching, export will face some difficulties due to the decreasing domestic demand for finished steel and the price drop of semi-finished products in the international market. Semi-finished prices, common carbon
billet prices in particular, are expected to fall again.
SteelOrbis Shanghai