SteelOrbis Shanghai
In early October Chinese
billet prices first saw a decline before then rebounding, while
slab prices remained stable throughout the holiday.
On October 11, the price of common carbon
billet in Tangshan, Hebei Province, increased RMB 30/mt ($4) to RMB 2,830/mt ($358), that of 20MnSi was at RMB 2,900/mt ($367). The ex-factory price of
slab from
Laiwu Steel was at RMB 2,950/mt ($373), equal to the pre-National Day levels.
During the holiday, Chinese
billet prices continued their downward trend. Prices in northeastern and northern
China saw a steady decline. At one point, the price of common carbon
billet in Tangshan dropped as low as RMB 2,780/mt ($351).
After the holiday, with the rising prices of steel strip and large profiled steel, the
billet trading market improved in Tangshan. The deal prices are currently around RMB 2,800-2,820/mt ($354-357). Furthermore, many steel mills hiked their ex-factory prices to RMB 2,830/mt ($358). However, some market insiders indicate that rolling mills are not optimistic about the future, so purchases are limited.
As regards the other regions, the eastern
China market did not see any improvement but instead saw bearish demand and a shrinking
trading volume. Meanwhile, the market in southern
China seems to be showing a quite strong movement.
As for
billet, the market is facing a mixed situation with both good and bad news. On the one hand, due to the blocked exports of
wire rod in the US, demand for
billet is diminishing, leading to the continuous decrease in domestic market prices. Moreover, with the strengthening central government control on fixed assets investment, the demand for long products is shrinking. On the other hand, local governments have recently begun strengthening inspections and punishments for small-sized mills with severe pollution problems. Thus, future supply will decline and this may provide support for
billet prices.
Slab prices remained stable with the better exports situation. However, there was no remarkable improvement in domestic demand.
Currently, the Chinese semi finished steel market is showing stable movement. The market future mainly depends on macro-control measures.