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Billet prices in Tangshan remain stable, but demand is increasing

Although Tangshan billet prices remained unchanged last week, the reduced losses in billet sales triggered the production increase.

Billet prices in Tangshan remain stable, but demand is increasing

The price of Q235 150 mm square billet at Tangshan in northern China's Hebei province was assessed at Yuan 3,520/t ($489/t) EXW, including 13% VAT, unchanged from February 25.

The increased demand is due to recently improved business activities. Business activity has been improving recently as local mills increase production

The daily billet consumption of the 48 mills tracked in Tangshan increased to 54,900 tons/day with a weekly increase of 12,200 tons/day during the second week of February 22-28, approaching the highest level in 2.5 months.

It was observed that the total billet stocks of the mills surveyed decreased by 53,000 tons weekly to 398,000 tons as of February 28. Most of the mills had resumed production last week. On the supply side, daily billet production by 24 steel producers in Tangshan averaged 38,100 tons/day during February 23-29.

Overall, the billet market in Tangshan is gradually recovering steadily. Demand is increasing, and supply is keeping pace. This situation may ensure the stability or increase of billet prices in the coming period.

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