Good sales figure for Chinese semis

Shanghai SteelOrbis Thanks to brisk business activities, Chinese semi finished steel prices kept going up by a large scale throughout last week, which –on the other hand- brings some obstacles to the exports market. At the end of Wednesday, March 8, common carbon billet price in Tangshan, Hebei Province was RMB 2,750/mt ($342), and that of 20 MnSi billet was RMB 2,800/mt ($348). Both prices were up RMB 150/mt ($19) weekly. Prices in other regions also saw some increases. With the upward trend in Chinese steel market, many rolling mills resumed production one after the other, driving up the demand for semi finished steel. Many semis producers have full production tasks until the end of April, encouraging them to keep raising their ex-factory prices. The small increase range of rebar prices caused to just a fractional increase for 20 MnSi billet orders. At present, semis producers concentrate on producing common carbon billets used for wire rods. Nevertheless, the sharp increase in domestic semis prices make exports difficult. Based on the current semis ex-factory prices, offers at Tianjin Port are at $364/mt FOB or above. At present, steel mills in Southeast Asia have not yet accepted this level, leading to few bookings. Nevertheless, the prices in international semis market is also in an upward trend with large increase ranges, leaving some shares to China in the export market. Since the price range during the last week is sharp, and due to the end of the upward trend for recent finished steel prices, Chinese semis prices are expected to be stable nowadays.