Chinese domestic spot billet prices continue to move up amid rising steel futures
Billet prices in the Chinese local market shot up by $15/t (Yuan 100/t) on Thursday. Prices for 150*150mm Q235 were reported at 3,850-3,900/t ($578), ex-Tangshan (including 17% VAT), which is 100 yuan ($15) per tonne higher than previous day’s trade.
The price of 3,900 yuan per tonne ($577) for domestic billet in China has hit a six-year high level. Market participants credit this price hike to crack down made by Chinese government on small induction furnaces which were making low quality steel and rising steel futures.
Local trades brief SteelMint about, the Chinese congress party’s review meeting that takes place every 5 years and its next meeting will be held to review government performance sometime in September or October. People believe that government may come out with more stricter pollution norms, which may lead to more production cuts.
No billet export offers were reported from China this week because of the strength of domestic demand. However participants feel it should not be less than USD 550/MT FOB China main port.
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