Semis price edged up further by CNY 30 per tonne in Tangshan city following China’s announcement to lower banks' reserve requirement ratio by 50 basis points for the first time in three years.

This marks a price hike of CNY 70 per tonne as compared to last Friday.

Currently the EXW price of billet is at CNY 3880 per tonne to CNY 3900 per tonne and that of 20MnSi billet comes to CNY 4000 per tonne to CNY 4020 per tonne and the market transaction is good.

The good market performance of strip and section boosted the billet price, industry sources said. Parts of market players have pulled back from the market given the tight supply in spot market. The current billet cost of CNY 3750 per tonne enables them to make a profit of around CNY 100 per tonne.

Most market players are cautious about purchasing, taking pessimistic view towards the market outlook with year-end coming. It is predicted that semis price will fluctuate in narrow range in the short term.

(Source: www.steelhome.cn/en)
China steel information centre and industry database