China’s domestic prices of raw material, semi finish and finish steel fall today amid buyers’ resistance to accept abrupt hike in prices.
Iron ore, billet and HRC prices, which were on a high since Monday, have registered a sharp fall today.
Billet
As per trade sources, domestic billet prices have plummeted by USD 50-55/MT against yesterday. The key reason being big discounts given by traders and distributors to boost sales as domestic buyers are not willing to accept price hike. In Tangshan, billet today traded at RMB 1,910/MT (USD 293/MT); has move down by RMB 350/MT (USD 54/MT) against yesterday.
Iron ore
Following decline in billet prices, China’s seaborne iron ore prices also fell by about USD 4-5/MT. Today’s global iron ore prices for Fe 62% Australian fines are heard to be at USD 58/MT, CFR China against USD 63/MT yesterday.
The further hike in prices depends upon steel sales in coming days and as of now iron ore buyers and sellers have entered into wait and watch mode.
HRC
With drop in domestic billet prices, HRC prices in Shanghai also fell from RMB 2,600/MT (USD 400/MT) to RMB 2,375/MT (USD 365/MT). Traders dealing with Chinese material stated that with no fundamental reason for improvement in effective demand, sustainability of such a sudden price hike was always questionable.
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