Chinese semi finished steel prices keep climbing

SteelOrbis Shanghai Billet and slab prices in Chinese markets have been driven up by the price increases in international semi-finished steel markets, while Chinese semi-finished steel exports also climbed compared to previous weeks. China's domestic market expects to retain the strong trend next week. Until two weeks ago, the sharp increase in domestic semis prices hindered the export business; therefore, the export volume dropped slightly. However, with the strong upward trend for international semis prices, China's semis exports recovered recently. Both the export volume and export offers went up to a certain degree. At present, export offers of domestic mills for common carbon billet exported to Southeast Asia are at $355/mt FOB for May shipments. Offers of traders are at $362/mt, but no deal has been concluded at this level. The offers for 20 MnSi billet exports to Southeast Asia are at $362-365/mt for May shipments. In domestic market, the common carbon billet price in Tangshan, Hebei Province went up RMB 70/mt ($9) weekly to RMB 2,850/mt ($355), while that of 20 MnSi billet remained constant at RMB 2,850/mt ($355) on April 5. The slab price of Jinan Steel increased RMB 80/mt ($10) to RMB 2,850/mt ($355). The explosion of a blast furnace in a large steel mill in Tangshan caused to insufficient semi-finished product availability in that market. The purchases of that mill added to the already tight supply leading to sharp price increase in the prices of Tangshan. Similar to the finished steel products, the price trends of different semi finished products vary from each other. Driven by the upward trend of HR and strip steel prices as well as the robust export, the common carbon billet and slab prices are also firm. However, 20MnSi billet prices have not bettered due to bearish rebar prices. Steel mills do not prefer producing 20 MnSi billets quite much.