Chinese Billet Export Offers Hit 1-Year High

Chinese billet export offers hit 1-year high amid low inventories and rising domestic prices. However, sustainability remains questionable.

Chinese billet export offers have hit 1-year high at USD 320/MT, following steep increase in Chinese domestic billet offers.

In just 2-3 days, Chinese domestic billet offers jumped up by RMB 360/MT (USD 55/MT) and currently assessed at RMB 1,910/MT (USD 294/MT), ex-Tangshan (17% VAT included).

Viewing the entire situation, Chinese steel mills hold their offers and not offering the metal below USD 320/MT, FoB China levels. Besides, small mills in China are offering default delivery, leading to low inventory and in turn shortage of billet in the market.

Steel prices may not sustain – Chinese traders

Albeit, Chinese domestic prices are currently on a rising mode, there is low buying interest seen among the buyers. Chinese traders do not see prices to sustain for long term owing weak fundamentals.

Today, Chinese billet prices have corrected by around RMB 230/MT (USD 35/MT). Currently, common Carbon square billet offers in Tangshan (China) stand at RMB 1,910/MT (USD 294/MT), ex-plant (17% VAT included).