In August this year, China’s semi-finished steel exports totaled 1.76 million mt, up 12 percent month on month, while rising by 230 percent year on year, according to China’s customs authorities. Since demand in the local market in China was weak in the June-August period, mills and traders were relying on exports, and billet was one of the main products for export sale amid poor rebar market conditions.
In the January-August period this year, China’s semi-finished steel exports amounted to 9.24 million mt, up 292 percent year on year.
Before the middle of July, the wide price gap between billet from China and billet of other origins like Indonesia or Russia contributed to the relatively high export volume of Chinese billet. Since orders have already been booked for shipment in September and October, weaker demand and the lack of further price cuts for Chinese billet since the latter half of July may exert a negative impact on Chinese billet export volumes after October.
