According to the weekly survey conducted, between April 15 and 21, the price of Q235 150 mm square billets in Tangshan increased by 60 Yuan/ton (8 USD), reaching 3,470 Yuan/ton EXW including 13% VAT (478 USD). This increase boosted the profit margins of local steel producers in billet sales.
Based on a sample of ten integrated plants in Tangshan, the average profit margins reached 190 Yuan per ton (26 USD) as of April 19, which was 78 Yuan per ton (10 USD) higher compared to the previous week. However, the costs of semi-finished products also rose, with the cost per ton increasing by 12 Yuan/ton weekly, reaching 3,300 Yuan/ton (455 USD) including 13% VAT.
On the other hand, steel producers in Tangshan were cautious in purchasing semi-finished products last week. According to the survey, between April 11 and 17, the daily steel consumption of 48 mills decreased by an average of 16,700 tons/day, reaching 45,200 tons/day, a result of mills digesting billets in their own facilities, leading to total billet stocks dropping to 350,600 tons as of April 17, the lowest level in two months.
The total billet stocks in four commercial warehouses and two ports in Tangshan decreased by 48,600 tons weekly, reaching 900,200 tons as of April 18, indicating a slowdown in the supply speed of local rolling mills.
These developments in the steel market in Tangshan are increasing the profit margins of local producers while prompting a cautious approach in procurement strategies. Observers note that market fluctuations will continue to be closely monitored.
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