The export trend of Chinese steel billets has attracted much attention, and Southeast Asian electric furnace factories are closely monitoring relevant policies

Recently, news about steel billet exports has spread in the market. We have learned that some steel mills and large traders have suspended the export of steel billets, while others have stated that they will gradually reduce their exports. Currently, the mainstream export price for 5sp 130 * 130 billets is around 510 USD/ton FOB. In terms of overseas quotations, mainstream steel billet resources in Indonesia are quoted at $520/ton FOB, Vietnam is quoted at $530/ton FOB, and advantageous resources in the Middle East are quoted at $505/ton FOB A792 Grade 60(410) steel.

At the same time, there are rumors in the market that China's steel billet export tax rate may be adjusted. At present, the export tax rate for steel billets is 0, and the export tariff for pig iron is 20%. If the export tax rate for steel billets is based on that of pig iron, then calculated at the current price, the export cost of steel billets will be higher than that of threaded steel and hot coils, and they do not meet the export conditions. As far as we know, Southeast Asian electric furnace factories have been paying close attention to the subsequent policy changes in China's steel billet exports recently. If China imposes export tariffs on steel billets, then internationally, the price advantage of Southeast Asian steel billets will be greatly enhanced A792 Grade 60(410) steel.

According to the data released by the Chinese Customs, in 2023, China will export 3.279 million tons of steel billets (including slabs), mainly from Italy (705600 tons), Indonesia (534300 tons), the Philippines (509700 tons), Guatemala (215000 tons), and Taiwan, China, China (197200 tons). At present, the export tariff for steel billets is still 0, and we will continue to monitor it A792 Grade 60(410) steel.