The Tangshan government’s plan to extend steel production caps beyond the winter heating season, though still yet to be decided, continued to bolster steel prices by raising expectations of lower supply.
The price of billet increased 140 yuan ($22) per tonne over the weekend and Monday morning. By 3pm, the semi-finished product was being traded at 3,740 yuan per tonne.
Now that the Chinese New Year has concluded, it is business as usual in the iron ore market, with traders returning to offer seaborne cargoes.
Several trading sources said that they offered their cargoes at lower premiums compared with pre-holiday levels since many mills had stocked up ahead of the February 15-21 holiday in China and are not in a...