However, the gradual resumption of operations by local rolling mills last week has increased demand for billets, pushing prices up.
As of February 25th, the price of Tangshan Q235 150mm square billets fell by 130 Yuan/ton ($18.1/ton) to 3,520 Yuan/ton ($488.98 USD) EXW.
According to a survey conducted in Tangshan, the daily billet consumption of 55 rolling mills increased by approximately 27,700 tons per day from February 15th to 21st, reaching an average of 42,700 tons per day.
The increase in production among the re-rolling mills and low billet inventories has led to the activation of semi-finished product supplies. As of February 21st, billet inventories at re-rolling mills increased by 133,000 tons compared to the previous week, reaching 451,000 tons, the highest level in 6.5 months.
The daily billet production of 30 steel producers monitored in Tangshan remained largely stable from February 16th to 22nd, with a weekly increase of 300 tons to reach an average of 37,900 tons per day.
As a result, billet prices in Tangshan are fluctuating slightly due to the decline in iron futures prices. Rising demand and low inventories from local rolling companies may push prices higher in the coming days.
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