Posted on 05 Nov 2024
Billet prices in Tangshan in North China's Hebei province declined during the week of October 28-November 3 in tandem with softening rebar futures prices. Meanwhile, both billet demand and production weakened last week, and the destocking pace of total billet inventories also slowed down, the results of Mysteel's weekly survey indicate.
As of November 3, the Tangshan Q235 150mm square billet price was lower by Yuan 70/tonne ($9.9/t) on week at Yuan 3,110/t EXW and including the 13% VAT, according to Mysteel's assessment.
Daily billet consumption among the 44 steel re-rollers in Tangshan under Mysteel's tracking decreased for a second week during October 24-30, falling by 18,000 tonnes/day on week to average 31,100 t/d, as local re-rollers had been ordered by local authorities to halt their operations during October 23-29 in response to worsening air pollution over the city.
Though these re-rollers had purchased the semis in a cautious manner, billet stocks at their yards still grew modestly, the survey data show. As of October 30, the total tonnage held by the re-rollers had reversed up by 32,100 tonnes on week to 521,800 tonnes.
At the same time, billet stocks across the four commercial warehouses and two ports in Tangshan that Mysteel checks thinned slowly, declining by 21,000 tonnes on week to 1.24 million tonnes as of October 31.
As for production, daily billet output among the 23 steel mills in Tangshan that Mysteel follows averaged 41,100 t/d over October 25-31, lower by 1,400 t/d on week. But survey respondents said production remained relatively high compared with previous years. During the corresponding period last year, average daily output reached 36,500 t/d, Mysteel's data showed.
The per tonne cost incurred by the ten integrated mills in Tangshan under Mysteel's tracking slipped by Yuan 4/t on week to average Yuan 3,190/t and including the 13% VAT, while their average loss on billet sales reached Yuan 60/t on November 1.
Source:Mysteel Global
