Chinese Domestic Steel Market Update, 12 Aug'19

Billet: Yesterday, the ex-factory price of general carbon square billet in Tangshan, Changli was settled at RMB 3,460/MT, stable, while Qian'an area for the same at RMB 3,500/MT. Over the weekend, there was hearsay that some billet companies had chosen not to sell. Today the steel market is in weak and slowed-down operation with insufficient transactions on billet and price of finished steel tend to go up. Mill direct sales are moderate. The ex-warehouse spot decrease to RMB 3,520-3,530/MT tax-included with a few transactions on low cost resources. The billet inventory at warehouses of Xiangyu Zhengfeng and Haiyi Hongrun is 246,300 MT, a decrease of 1,300 MT from yesterday. The overall transaction on finished steel is weak and it is expected that billet price in the afternoon may hold steady.