China’s billet export offers advance this week after it was reported that China will cut down 50-100 MnT steel capacity in 2017.
Current offers for 150*150mm Q235 grade billet offers are assessed at USD 400-410/MT FOB China main port. Last week offers were at USD 390-400/MT FOB China main port. However no deal have been concluded at these levels.
However, experts believe that it will not have a large impact as China’s actual steel production continues to remain at similar levels. China still has over 350 MnT of excess capacity.
China produced 804 MnT of steel in 2016, similar to that in the previous year against an installed capacity of 1200 MnT.
Chinese domestic billet prices also rose this week by 120 RMB . Current offers are assessed at RMB 2,990/MT (Ex-Tanshang), include VAT of 17%.
Leave a Reply