Chinese hot rolled narrow strip manufacturer suspends production, prefers to sell billet

SteelOrbis Shanghai SteelOrbis was informed today by one Chinese hot rolled narrow strip manufacturer that it has decided to suspend activity on its production line for hot rolled narrow strip in April, opting instead to sell billet directly. The manufacturer's decision is due to the current price difference between billet and hot rolled narrow strip of only around RMB 160/mt (USD 21/mt). In the Tangshan market, the price of hot rolled narrow strip is currently about RMB 3,120/mt (USD 404/mt),while the price of billet 150 mm x 150 mm x 6 m Q195-235 is around RMB 2,960/mt (USD 383/mt). The strong demand for billet from the international market keeps the domestic billet price high. The current export quotation for 150 mm square Q195-235 billet is about USD 480/mt FOB Tianjin. In short, the price of hot rolled narrow strip is thought to be at its lowest point at the present time. However, the expectation is that it will begin to rise next month. All the above prices include 17 percent VAT.