In Tangshan, located in the Hebei province of Northern China, the price of Q235 150 mm square billets was evaluated at 3,460 Yuan/ton (477 USD/ton) EXW, including a 13% VAT, according to data from April 28th. However, with a slowdown in processed steel sales and ongoing losses, a cautious approach was observed regarding semi-finished product supply, as indicated by a weekly survey.
The daily billet consumption of the 48 mills in Tangshan decreased to an average of 44,200 tons/day, with a weekly drop of 1,000 tons/day recorded from April 18th to 24th. However, cautious purchasing activities by re-rolling mills led to an increase in billet stocks, reaching a total of 392,300 tons by April 24th, reflecting a weekly rise of 41,700 tons.
Meanwhile, the daily billet production of the 24 steel producers in Tangshan averaged 36,000 tons/day from April 19th to 25th. There was a weekly decrease of 2,000 tons/day, mainly due to some mills increasing final steel production after completing billet production, contributing to the decline in billet prices. Consequently, profits from billet sales for steel producers narrowed due to high production costs.
The average cost for the ten mills in Tangshan, including a 13% VAT, increased by 43 Yuan/ton weekly to reach 3,343 Yuan/ton (461 USD). Additionally, low production and weakening demand resulted in a slower reduction of billet stocks for local retailers compared to the previous week.
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