Chinese billet offers gained by RMB 30/MT (USD 5) on Thursday to touch 2-month high level. 150*150 mm billet prices are assessed at RMB 2,030/MT (USD 312) against last day trade at RMB 2,000/MT (USD 308). The current level was last seen on 2 Apr’16. All prices are including 17% VAT.
In the beginning of Jun’16, prices in Chinese domestic market started to boost up to a level and then remained stable in the mid of the month. However, offers have been almost firm in the range of RMB 1,960-2,000/MT (USD 302-308) since last week.
Speculation of production cut among market participated seems to be a major reason for rise in prices. However, demand is still subdued, which indicates that this price rise is unlikely to sustain for long term.
Export offers have also gone up in-line with rising domestic prices. No firm offers were heard but market participants do not expect it to lower than USD 305-310/MT, FoB India.
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