According to the weekly survey conducted, the price of Q235 150 mm square billet fell by 2.3% to 3,440 yuan/ton ($478.8/ton) EXW between March 4th and 10th. This decrease is particularly linked to stagnation in the final steel market and limited growth in billet demand.
Re-rollers in Tangshan are showing a cautious approach and generally prefer to purchase billets only for urgent production needs. This trend is seen as a reflection of the stagnation in the final steel market. For instance, during the period from February 29th to March 6th, daily billet consumption in 48 re-rolling mills increased by only 1.1% to 55,500 tons/day, a relatively limited increase compared to the previous week.
Meanwhile, the decline in billet stocks continues. For example, as of March 6th, billet stocks in sample re-rollers decreased by 6.5% weekly to 372,000 tons. Billet stocks in commercial warehouses and ports also decreased by 7.7% weekly to 1.44 million tons.
On the production side, daily billet production by steel producers in Tangshan continued its five-week increasing trend, rising by 6.8% weekly to an average of 40,700 tons/day. Some sources indicate that some producers have increased billet production following reductions in losses.
All these data indicate that the steel industry in Tangshan needs to take precautions in response to slowing demand and falling prices. In the coming period, how local producers will react to market fluctuations and reshape their production strategies will be crucial.
Comments
1 commentsthis situation also impacting other neighboring counties. Japanese monthly tender settled much lower compared to February and volumes significantly reduced.
russian semis offers to region are aggressive which has an influence on taiwanese bids.
east’s depression led to watch & observe in the West and unfortunately this week will be a quiet one.