Another sharp drop in the Chinese domestic ferrous markets this week has created further pessimism in the market that import prices may continue to drop, although fundamentals have remained much more solid in Southeast Asia, sources told Fastmarkets on Friday November 12.
Local rebar and billet prices crashed again this week amid weak futures markets, led by a
dismal performance in coal contracts, while worries about Chinese rebar demand also led to negativity.
Fastmarkets' price assessment for
steel billet, domestic, exw Tangshan, Northern China, was 4,450 yuan ($696) per tonne including value-added tax at 3pm local time on Friday, down by 450 yuan per tonne week on week. But Fastmarkets heard that major mills in the area had reduced their prices to 4,290 per tonne ex-works later in the afternoon.
Sources in China said that they thought the situation may become worse before improving.
"We don't think the steel price will recover soon, and the [workable] price will fall below $600 per tonne cfr China for 3sp billet," a major China billet buyer told Fastmarkets on Friday.
"Chinese mills reduced billet prices again this afternoon, and futures for rebar...