Continuous increase for Chinese semi-finished prices

SteelOrbis Shanghai Driven by the brisk commercial activity, Chinese semi-finished steel prices have seen continuous increases throughout last week. Chinese long product prices, especially those of wire rods, have seen rapid increases after the holiday, boosting rolling mills' desire to purchase billets. Therefore, the commercial activities in Hebei, Shandong and Fujian improved. As the semis prices in the international market keep increasing recently, the deal prices for Russian billets to the Philippines are at $420-430/mt CFR Russia. However, Russian steel mills are not accepting follow-up orders from the steel mills in the Philippines. The possibility of export duty levy on semi finished steel seems little nowadays. According to the relevant authority, the adjustment to the export tax rebate involves finished steel only. Therefore, most semis producers have started accepting export orders, although some of them are still cautious. In Tangshan, most steel mills are mainly exporting low alloy billets. According to the current market condition, the availability of semi finished steel is tight in the global market. The domestic semis prices may keep the upward trend. In addition, the hike in international iron ore prices may further boost the semis prices.