Weakening demand from re-rollers is likely to keep Chinese steel billet prices hovering near recent lows in early August. However, prices may experience a slight recovery toward the end of the month if end-user demand for finished steel improves and boosts the semi-finished market.
Main Information
Chinese steel billet prices declined in July across both domestic and export markets due to a widespread seasonal slowdown in demand. This situation reflects weakening domestic demand from the private sector and public infrastructure construction projects, as well as underperforming export activity to markets such as Indonesia and Turkey.
The price of Q235 150mm square steel billets in Tangshan, Hebei province in North China – the country's steel billet industry hub – was at 2,920 RMB/ton (433 USD/ton) ex-works on July 31, down 50 RMB/ton compared to the June 30 price. The export price of 3SP 150x150mm square steel billets at Jingtang port (North China) stood at 451 USD/ton FOB on July 31, dropping sharply by 14 USD/ton from the previous month.
Falling steel billet prices have prompted Chinese steelmakers to reschedule furnace maintenance and divert more molten iron toward the production of other finished steel products, thereby reducing the supply of steel billets in the domestic market.
(Source: Mysteel Global)
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