China billet prices soar on de-stocking and better sentiment
Supported by rebounding steel prices, Chinese billet prices have continued to increase since late April, Steel Business Briefing learns from market sources. In northern China's Tangshan area, mills' ex-works prices for 150mm Q235 billet have soared to RMB 3,200/ton ($469/t), on a cash payment basis with 17% VAT. This compares with prices of RMB 3,020/t at the end of April. Chinese steel prices have strengthened since late April and continued climbing in May on the back of de-stocking and improved market sentiment. An industry source believes billet producers can generate healthy profits of RMB 200-300/t from current sales, but warns that rapid increases seen over the past few weeks could be followed by slight falls if sales start to slow again.
Supported by rebounding steel prices, Chinese billet prices have continued to increase since late April, Steel Business Briefing learns from market sources. In northern China's Tangshan area, mills' ex-works prices for 150mm Q235 billet have soared to RMB 3,200/ton ($469/t), on a cash payment basis with 17% VAT. This compares with prices of RMB 3,020/t at the end of April. Chinese steel prices have strengthened since late April and continued climbing in May on the back of de-stocking and improved market sentiment. An industry source believes billet producers can generate healthy profits of RMB 200-300/t from current sales, but warns that rapid increases seen over the past few weeks could be followed by slight falls if sales start to slow again.
Fewer companies expect higher prices:
Price expectations
% of respondents
Higher prices Unchanged Lower prices
W/C 4 May 17% 43% 40%
W/C 27 Apr 25% 41% 34%
Change w/w -8% +2% +6%
The latest market survey results from The Steel Index show that fewer US, European and Asian companies expect higher prices than in the previous week, while the number of respondents foreseeing lower prices rose. However, more US companies are expecting higher demand in the next three months, but more companies elsewhere predict lower demand. There was a significant increase in European companies with lower inventories.
Price expectations
% of respondents
Higher prices Unchanged Lower prices
W/C 4 May 17% 43% 40%
W/C 27 Apr 25% 41% 34%
Change w/w -8% +2% +6%
The latest market survey results from The Steel Index show that fewer US, European and Asian companies expect higher prices than in the previous week, while the number of respondents foreseeing lower prices rose. However, more US companies are expecting higher demand in the next three months, but more companies elsewhere predict lower demand. There was a significant increase in European companies with lower inventories.
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