More purchasing sees Chinese billet prices increase
Chinese billet prices have risen from early April, but because of uncertainty about how downstream products will perform, mill sources are unable to predict forward billet prices. Steel Business Briefing is told that billet prices in northern China's Tangshan area have increased by about RMB 50/tonne ($7/t) since 26 April in line with an increase in sales. "Most of the buyers are re-rollers," a local mill source says.
"Although strip-makers are not profitable in the current situation, they still need to protect their market share by keeping on producing," he says. Tangshan mill prices for 150mm Q235 billet are prevailing at RMB 3,020/t ($442/t) on a cash payment basis with 17% VAT. Throughout most of April, prices have fluctuated below 3,000/t. Another Tangshan mill source believes that some re-rollers might think prices have reached the bottom and started to re-stock. This has resulted in more purchasing since the weekend. "But steel prices are volatile these days, and I have no idea whether the long-expected recovery is finally approaching," he says.
Summary of Japanese steel section exports Japanese steel section exports totaled 38,531 tons, at FOB US$1010.8/ton. Among them, Japan exported 24,125 tons of steel section to Korea, at FOB US$1,041/ton in Feb; zero tons of steel section to US; 2,398 tons of steel section to China, at FOB US$1198.5/ton; and 5,215 tons of steel section went to Taiwan, at FOB US$941.1 tons.
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