Chinese Domestic Steel Market Update, 08 Jan'20

Billet: Yesterday, the ex-factory price of general carbon square billet in Tangshan, Changli and Qian'an was settled at RMB 3,310/MT, up10; today, steel market in Changli area gained RMB 10 to RMB 3,320/MT and transactions on billet after the uptick is general while prices of finished steel inclines to inch down. Mill direct sales are smooth. The ex-warehouse spot price is offered at around RMB 3,400-3,410/MT tax-included with some deals. The billet inventory at warehouses of Xianggu Zhengfeng, Haiyi Hongrun and Wuchan zhenxiang is 156,700 MT, up 3,700 MT from previous day. Transactions on finished steel are smooth on the whole and it is expected that billet in the afternoon may trend up.