Chinese Domestic Steel Market Update, 3 Jul'19

Billet: Yesterday, the ex-factory price of general carbon billet in Tangshan, Changli was settled at RMB 3,670/MT down RMB 30, while the same dropped by RMB 20 in Qian 'an area. Today, the steel market runs in weak consolidation, and the billet transactions are tepid, while the prices of downstream finished product are slightly lowered. Mill direct sales are relatively smooth. The ex-warehouse spot is offered at RMB 3,700/MT or so tax-inclusive with very few transactions. The billet inventory at warehouse of Xiangyu Zhengfeng and Haiyi Hongrun is 418,000 MT, an increase of 1,700 MT; finished product prices moved down to different extents and the overall transactions are weak. It is expected that the billet will drop by RMB 30-40 in the afternoon.