Posted on 24 Jan 2024
The price of Q235 150mm square billet under Mysteel's assessment in Tangshan in North China's Hebei province, the country's largest steel production city, had recovered by Yuan 20/tonne ($2.8/t) on week as of January 21 to reach Yuan 3,590/t EXW and including the 13% VAT. Billet production stayed relatively stable while demand from local re-rollers had improved generally, the results of weekly survey show.
The daily consumption of billet among the 55 re-rollers in Tangshan monitored by Mysteel rose by 8,000 tonnes/day on week to average 47,800 t/d over January 11-17. The capacity utilization rate of the surveyed re-rollers moved up after their margins on finished steel sales improved, and as a result, their demand for semis increased compared with the previous week, according to the survey findings.
However, survey respondents warned that billet demand would retreat modestly soon because several major re-rollers are stopped to conduct maintenance.
Meanwhile, most billet producers in Tangshan maintained steady operations during the survey period. Indeed, daily billet output among the 30 local steel mills remained largely unchanged on week at 45,400 t/d on average over January 12-18, higher by a small 800 t/d on week.
The average loss on billet sales incurred by the ten integrated steel mills in Tangshan regularly surveyed by Mysteel stood at Yuan 299/t on January 19, narrowing by Yuan 8/t on week. In parallel, their average cost for producing the semis retreated by Yuan 58/t on week to Yuan 3,869/t including the 13% VAT.
As for billet inventories, the tonnage at the 55 re-rollers' yards had declined for the third straight week as of January 17, lower by another 104,100 tonnes on week at 260,500 tonnes.
On the other hand, billet stocks in retail warehouses continued to mount last week, with the volume held among the four commercial warehouses and two ports in Tangshan that Mysteel samples ticking up by 12,200 t/d on week to 1.36 million tonnes by January 18. Some billet supplies from outside Tangshan including imported semis had arrived at local ports, the survey found.
Source:Mysteel Global
