Chinese domestic billet offers rise by RMB 100-120/MT ($14-17) in line with rising demand and expensive raw material. Current offers for Q235, 150*150mm sized billets are at RMB 3250/MT ($471) ex-Tanshang, prices including 17% VAT.
Prices are also supported by recent ban on coal imports from North Korea, this means Chinese buyers possibly have to pay higher price for imported coal.
However market participants mention that, prices have increased too fast and sustainability may be questioned.
Chinese billet exporters remain out of the market as domestic realization is much higher than exports. Export offers for 150*150mm Q235 sized billets are assessed at around USD 420-430/MT FOB China.
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