Chinese semi finished steel market sees weak performance

SteelOrbis Shanghai Influenced by the bearish finished steel market, the Chinese semi finished steel market performed feebly over the past week, with even slab prices also sliding a little. On October 25, the price of common carbon billet in Tangshan, Hebei Province, had decreased RMB 10/mt ($1) week on week to RMB 2,820/mt ($357), while that of 20MnSi was at RMB 2,870/mt ($367). Meanwhile, the ex-factory price of slab from Laiwu Steel was down RMB 30/mt ($4) to RMB 2,920/mt ($373). Although the Chinese long products market did not see any remarkable decrease throughout the past week, the overall market trend was quite weak. As regards billet, prices remained stable on the whole with a slight decline in some regions. Nevertheless, the price of 20MnSi billet remained strong after the price decrease of the previous week and may see some rebound in the short term. As regards slab, the usually stable prices have seen change. Since the rolling mills are not optimistic about the future and have accordingly reduced their purchases, semis producers have had to raise their discount range. Therefore, actual deal prices have declined. Furthermore, with the reduced slab prices in the international market, exports have fallen recently. Meanwhile, insiders in the Chinese government have also suggested that the government may impose duties on exports of semis. Thus, in order to ink more contracts before any new regulations come into force, the steel mills lowered their quotations. Overall, the market is likely to move in a downward trend in the coming period.