Chinese Domestic Steel Market Update, 10 Jul'19

Billet: Today the ex-factory price of general carbon billet in Tangshan and Changli moved down by RMB 20 to report at RMB 3,630/MT. The price of finished products showed downward development in an overall stable situation. The mill direct sales of billets are passable with ex-warehouse spot offered at RMB 3,710/MT in tepid trading performance.

Today, according to the statistics, the billet inventory in Tangshan area showed a run-down compared with last week, posting first decline over last 6 weeks of inventory increase.

According to the survey, the operating rate of rolling mills went down slight this week, whereas in-plant inventory increased week on week, slowing down the purchasing pace on billets. Speaking of billet market tomorrow, its price may keep stable or turn strong if future market goes up, otherwise it will be largely weak.