China Steel prices continue to rise on billet shortage

Apr 24, 2016 14:26 GMT   Source:scrap register

CHINA April 22 2016 5:26 PM

SHANGHAI (Scrap Register): Chinese steel prices continued their surge, as fresh data revealed shortfall of around 10kt/day in billet production vs. requirements from rolling mills, said the Steel Index.

Billet prices in Tangshan jumped RMB 60/t, and rebar was up RMB 85/t. Rapidly expanding steelmaking margins again underpinned strong demand for iron ore. 

An Australian miner sold 61% Fe PB Fines via tender slightly above 67, and sold a similar cargo on COREX at 69 later in the day. 

A Brazilian miner sold 62.52% Fe basis SSFG fines on the same platform at 69.5, and sold 65% Fe IOCJ fines at 75 over globalORE. 

Another Australian miner sold 62.7% Fe basis Newman fines by private negotiation just above 69. A similar cargo traded later on COREX at 70.5.

In China, port stock prices were up over RMB 30/wmt. The most active SHFE rebar jumped 7.38% and DCE iron ore futures contract rose to the limit (+5.92%).