Chinese Billet Prices Up as US-China Comes Close to Resolve Tariffs

Domestic billet prices in China have moved up by RMB 160-200/MT (USD 23-29) in last two days after US-China reach 90-day ceasefire in a trade dispute regarding tariff hike.

As per market sources report to SteelMint, Chinese domestic billet prices are currently assessed at RMB 3,280-3,320/MT (USD 471-477) ex-Tangshan, China, including 17% VAT.

As per reports, The United States and China reached a 90-day ceasefire in a trade dispute. The breakthrough came after a dinner meeting Saturday between President Donald Trump and Chinese leader Xi Jinping at the Group of 20 summit in Buenos Aires.

Trump agreed to hold off on plans to raise tariffs Jan. 1 on USD 200 billion in Chinese goods. The Chinese agreed to buy a "not yet agreed upon, but very substantial amount of agricultural, energy, industrial" and other products from the United States to reduce America's huge trade deficit with China, the White House said.

Trump has imposed import taxes on USD 250 billion in Chinese products - 25% on USD 50 billion worth and 10% on the other USD 200 billion. Trump had planned to raise the tariffs on the USD 200 billion to 25% if he couldn't get a deal with Xi.

Under the agreement reached in Buenos Aires, the two countries have 90 days to resolve their differences over Beijing's tech policies. If they can't, the U.S. tariff increases will go into effect on the USD 200 billion in Chinese imports.