Chinese Mills Book Export Orders of 100,000 MT Billets Last Week - Sources

Chinese mills have resumed billet exports owing to falling prices in domestic market, but we do not see volumes to reach 2015 levels.

Chinese steel mills have booked export orders of around 100,000 MT billets last week, market participants mentioned SteelMint.

Chinese domestic billet prices have dropped by over USD 80/MT in last one month on expectations of lenient production curbs in China during winter months and rising steel output amid a seasonal moderation in demand.

"Chinese mills have concluded around 100,000 MT billets to Taiwan and Philippines at USD 445-450/MT CFR levels (which is equivalent to USD 430-435/MT FOB) last week. No firm offers or deals have been reported this week as prices have bounced back on news of tariff negotiations between US-China" said an exporter based in China.

Market participants mention that volumes will not be as high as it was in 2015 due to strict checking by Chinese customs. In 2015 Chinese traders used to export billets in the name of square bar and claim rebate.