Chinese Domestic Steel Market Update, 03 Jun'19

Billet: Yesterday the ex-factory price of general carbon billet in Tangshan, Changli and Qian'an areas was settled at RMB 3,550/MT down RMB 20. Today, the steel market runs weak and the billet transactions are insufficient, while price of finished products went down slightly. Mill direct sales are moderate. The ex-warehouse spot is offered at RMB 3,630/MT tax-inclusive with difficulty in transactions. The billet inventory at warehouses of Xiangyu Zhengfeng and Haiyi Hongrun are 194,600 MT, down 10,500 MT from last Friday. The overall transaction of finished products is weak, and it is expected that the billet will drop by RMB 10-20 in the afternoon.

Construction steel: The mainstream construction steel in Tangshan decreased by RMB 10-30, with the current market price of rebar HRB 400 of big specification being at RMB 3,940/MT, small specification at RMB 4,000/MT, while coiled rebar at RMB 4,060/MT.