China is trying hard to revive from fragile market sentiments ever since Lunar holidays. However, increasing intensity of corona virus in the country is presenting new challenges with every passing day. Clues can be witnessed with plunge in domestic billet prices of the country.
The domestic billet prices in the nerve center of the Chinese steel market; Tangshan, has reached 3 year low and are hovering at RMB 3,000/MT (USD 427) ex-Tangshan, including 13% VAT. In a month’s time, Chinese domestic billet offers have come down by RMB 300 (USD 43) and by RMB 390 (USD 55) in last two months.
Another factor which is supporting the event is; the finished steel stocks has reached 5 years high, and along with corona virus outbreak, the factor has managed well to pull down the domestic billet prices of the country.
Chinese billet offers emerge in SE Asia – Looking at above mentioned footing, the country may possibly turn on its interest towards the export market.
According to trade sources report to SteelMint, Chinese billet offers have recently been floated offers for SE Asia. The country’s billet export offers were reported to be around USD 415-420/MT, CFR for Philippines. However no confirmation on the deal getting concluded was reported till the time of publishing this report. However, ongoing logistics and port issues can be a matter of concern for resumption of Chinese billet exports.
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