Indian summer continues for Chinese billet

Indian summer continues for Chinese billet

Chinese billet prices continued to gain momentum over the past week. In Hebei Province, common carbon billet and 20MnSi billet prices increased dramatically, while low alloy billet prices saw a minor increase. Transaction volume was healthy. By the close of trading on Wednesday, November 2, common carbon billet prices in Handan, Hebei Province, were at RMB 2’550/mt ($316), up RMB 70/mt ($9) compared to October 27; 20MnSi rose RMB 80/mt ($10) to RMB 2’620/mt ($313); and Q345B rose RMB 190/mt ($24) to RMB 2’730/mt ($338). The increase in finished products prices continued to drive up billet prices. Steelmakers indicated that the scaffold pipe market was brisk, leading to the upward trend in ribbon steel prices, and in turn a sharp increase in common carbon prices. The robust rebound in rebar prices contributed to the continuous price increase of 20MnSi billet. Up until a couple of weeks ago the market for finished products had been weak. During the weak period, many medium and small sized steel mills suspended their billet production, which led to low inventory. The current price increase was abrupt, so those steel mills were not able to immediately resume their production. This helped support the current price increase. Broken down by specific category of finished products, wire rod and rebar prices were firm, while HR sheet/coil and medium plate prices were weak. Therefore, billets, and especially slab for flat products, suffered great price pressures. It is expected that the price hike is unlikely to continue. SteelOrbis Shanghai