Posted on 19 Nov 2024
Billet prices in Tangshan in North China's Hebei province decreased over November 11-17 as prices were dragged south by softening ferrous futures prices, according to Mysteel's weekly survey. However, survey respondents pointed out that local re-rollers could earn some money on steel sales last week, and this resulted in their demand for billets growing.
As of November 17, the Tangshan Q235 150mm square billet price had declined by Yuan 60/tonne ($8.3/t) on week to reach Yuan 3,040/t EXW and including the 13% VAT, according to Mysteel's assessment.
Meanwhile, daily billet consumption among the 44 re-rollers in Tangshan under Mysteel's tracking climbed for the second week during November 7-13, up by 18,100 tonnes/day on week to hit a seven-month high of 61,000 t/d on average.
The re-rollers' billet inventories had mounted for the third straight week, rising by 35,000 tonnes on week to 637,000 tonnes as of November 13, the data showed.
On the other hand, the price slump in the semis expanded the losses borne by local billet makers, with the average loss on billet sales endured by the ten integrated mills in Tangshan that Mysteel checks widening by Yuan 71/t on week to Yuan 138/t as of November 15.
However, the average per tonne cost these mills had incurred when producing the billets eased by Yuan 9/t on week to Yuan 3,178/t including the 13% VAT last week, the survey found.
Over November 8-14, daily billet output among the 23 steelmakers in Tangshan sampled by Mysteel fell by 1,500 t/d on week to average 40,600 t/d.
In tandem with the replenishment among re-rollers, total billet stocks across the four commercial warehouses and two ports in Tangshan that Mysteel monitors thinned further by 57,900 tonnes on week to 1.1 million tonnes as of November 14.
Source:Mysteel Global
