Chinese Domestic Steel Market Update, 27 May'19

Billet: Yesterday, the ex-factory price of general carbon billet in Tangshan, Changli and Qian'an was settled at RMB 3, 610/MT up RMB 10. Today, the steel market is in slow consolidation, with the overall transaction of billets being moderate and the prices of finished products are in disarray. Mill direct sales are passable. The ex-warehouse spot is offered at RMB 3,690-3,700/MT tax-inclusive, with some transactions on low-cost resources; the billet inventory at warehouses of Xiangyu Zhengfeng and Haiyi Hongrun is 230,400 MT, an increase of 300 MT from last Friday. The main stream prices of finished steels are stable, though individual resources are getting slightly higher. The transactions on some resources are passable but weak on the whole. It is expected that the billet price may stay stable in the afternoon.

Construction steel: The mainstream price of construction steel on Tangshan market dropped by RMB 20-50, with the current market price of rebar HRB 400 of big specification standing at RMB 3,990/MT and small specification at RMB 4,010/MT, while coiled rebar at RMB 4,040/MT. Transactions are weak.

HRC: Price of hot-rolled flat sheet swings up by RMB 10 compared with yesterday. The price of 1500 mm wide flat sheet by first-tier steel mills is at RMB 3, 880/MT, second-tier steel mill at RMB 3, 870/MT, while Q345 flat sheet at RMB 4, 050/MT. The transaction is generally weak.