A sharp drop in ferrous futures markets in China on Tuesday due to market expectations of a rise in Chinese steel output over the short term was also accompanied by a weakening in physical markets.
Local billet prices in Jiangsu province decreased to 5,260 yuan ($816) per tonne ex works including VAT on Tuesday, down 90 yuan per tonne day on day, while the benchmark Tangshan market fell 30 yuan per tonne at the end of trading, Fastmarkets heard.
“The domestic billet market dropped a lot today and the power shortage is still the biggest problem in China. I think the highest price China can pay for imports today is around $705-710 per tonne cfr, but there is not much buying interest currently,” a Chinese buyer source told Fastmarkets.
"Sentiments took a hit in China today," a Singapore-based trading source...