Billet prices in Tangshan have risen slightly

Tangshan billet prices in northern China's Hebei province are estimated by Mysteel to have rebounded slightly from losses in the previous three weeks, market watchers said.

As of Aug. 27, the billet price in Q235 at Tangshan rose to 3,510 yuan per tonne ($481.2 per tonne) EXW, including 13% VAT, and recovered by a modest 10 yuan per tonne in a week, according to Mysteel estimates.

Due to rising production costs and declining profit margins in billet sales, steel mills slowed down semi-finished product production last week, with daily billet output at 30 Mysteel-controlled mills declining from a three-week rise to an average of 47,000 tons/day in August . 18-24, weekly decrease by 1900 t/day or 3.9%.

As of August 25, the average loss on sales of billets suffered by the ten integrated plants in Tangshan under Mysteel's control was 48 yuan per ton, compared with a loss of 36 yuan per ton the previous week.

Meanwhile, the cost per ton incurred by these plants in the production of semi-finished products averaged 3,598 yuan per ton between Aug. 17 and 23, up 32 yuan for the week.

During the same period, the capacity utilization rate of the 89 Tangshan blast furnaces operated by Mysteel-controlled plants rose another 1.45 percentage points weekly to average 89.65%.

On the demand side, most re-rollers remained cautious about restocking semi-finished products during the study period and limited the acceptance of high-value semi-finished products, one source noted.

Between August 17 and 23, total billet consumption among the 55 rolling mills monitored by Mysteel averaged 56,500 t/d, down another 3,300 t/d or 5.5% weekly.

Meanwhile, Mysteel research showed that total stocks of blanks at these rolling mills rose by 20,700 tons, or 5.2% in a week, to 419,000 tons as of August 25.

In addition, the recent production restrictions imposed by the Tangshan City authorities on rolling mills to reduce air pollution could further reduce the consumption of semi-finished products in the short term, the source added.