SteelOrbis Shanghai
Chinese
semis prices rebounded in the past week thanks to the increase in
semis prices in the international market.
The strong demand in international market led to continuous increase in
semis prices, and this in turn reversed the softened Chinese
semis market. At present,
China's deal prices for common carbon
slab exported to the
Philippines and
Thailand stand at $ 415-420/mt CFR, while those in the previous several weeks are at $370-375/mt CFR. The offers for Q235 billets exported to
Southeast Asia are at $355/mt FOB, while the deal prices at $375/mt CFR.
The increase range of Chinese semi finished products is around RMB 300/mt ($37) after the Lunar New Year, while the prices of
iron ore, coke,
pig iron and
scrap are stable on the whole. Therefore, the profits of
semis producers are abundant. The sharp drop in
semis prices at the end of last year still has some impact on steel mills. Consequently, steel mills are very cautious and not quite optimistic about the market, though their order books are full. Therefore, they will tend to reduce their prices if they do not receive new orders.
In general, the supply and demand in the domestic market fail to support the current price levels. Nevertheless, the
semis prices in
China may increase because of the upward trend in the international market.
Billet and
slab prices increased from RMB 30/mt to RMB 70/mt ($4-9) last week in local Chinese markets.