Chinese exporters have hold offers for billet, on the back drop of volatile domestic market.
Chinese domestic steel prices rose abnormally last weekend on a news that several small mills are cutting down production and few mills have even defaulted on deliveries.
Q235 billet offers in Tangshan, China reached to USD 311/MT (RMB 2,020/MT) by the end of Sunday (6 Mar’16), up by USD 37/MT (RMB 240/MT) W-o-W.
There is a strong anticipation about further price hike in China, as steel traders term it as seasonal demand. However some traders believe that this is a mere imbalance in demand and supply which is likely to be re-balanced soon.
However, there are no firm offers for billet from China by exporters. The exporters here are not willing to sell less than USD 300/MT FoB China, which were offered at USD 270-275/MT FoB China last week. No trades have being heard at these levels.
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