Chinese billet export offers continue its downtrend on Tuesday due to short selling by suppliers on expectation that prices may fall further.
Export offers have dropped by USD 65/MT in last one week, making Q235 offers at around USD 320-325/MT, FoB China main port, which were hovering at USD 390/MT last week. These levels were last observed in the month of May’15.
Prices have dropped on account of aggressive selling from Chinese mills as production increases in the month of April.
No trades have been heard, but it seems that buyers will want to take position if global scrap prices do not fall.
Chinese domestic prices
Chinese domestic billet offers today have again dropped by RMB 50/MT (USD 8/MT) to RMB 1,920/MT (USD 295/MT) against RMB 1,970/MT (USD 303/MT) on 9 Apr’16. This level was last seen on 18 Mar’16.
In a week, prices have fallen by RMB 470/MT (USD 72/MT) in China’s local market.
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