Billet and slab prices high, availability low in China

SteelOrbis Shanghai Driven by the massive increase in prices of international and domestic finished steel, Chinese semi-finished steel producers and traders are holding a very optimistic attitude towards the market with brisk commercial activities. Continuing the upward trend, Chinese semi finished steel prices kept going up throughout the week. In particular, with the massive increase in wire rod and rebar prices in eastern and southern Chinese markets, local steel mills went to northern China to purchase semi-finished materials, boosting the price increase in northern China. According to a source from a steel mill in northern China, the mills filled their order books for July and the local steel mills' inventory was basically zero. He also said that, according to the current cost accounting of medium- and small-sized steel mills, the profits of semi finished steel was approaching RMB 600/mt ($75). Therefore, the rise in iron ore prices can not support the semi finished steel prices. The strong international and domestic demand is the primary factor boosting price increase. Chinese semi-finished steel prices will maintain the upward trend.