Chinese Domestic Billet Market Update, 12 May'20

Yesterday the ex-mill, tax-inclusive price of general carbon square billet 150*150mm in Changli and Qian'an was settled at RMB 3,140/MT, up RMB 10; today, the steel market remains stable. Overall transactions on billet were modest, and the price of finished steel tends to be stabilized. Mill's direct dispatch is smooth. The warehouse spot is mainly offered at around RMB 3,240-3,250/MT tax-inclusive with some transactions on low-cost resources. The billet inventory at warehouses of Xiangyu Zhengfeng, Hairun Hongyi, and Wuchan Zhenxiang totaled 322,200 MT, down 10,400 MT from the level of a day earlier. As the stock level at the warehouse continuously to draw down, expectations on higher prices are gaining ground.