During the week, demand for steel billet remained generally weak and trading volumes remained low. However, some low-priced deals saw slight improvements later in the week.
Production capacities of steel companies in Tangshan also remained limited. Although some plants are inclined to increase their output, they are taking a cautious approach as overall demand remains low.
Ex-factory prices of some steel billets in Tangshan fell by 40 yuan ($5) to 3,310 yuan ($455) per tonne from the previous week, according to a statement on Friday. The spot price of stored steel billets fell 30 yuan ($4) to 3,370 yuan ($463) per tonne.
In Tangshan, steel billet stocks decreased by 21,700 tons on the week to 954,400 tons. This indicates that stocks in the market are decreasing and demand is being met at current levels.
Volatile price movements are expected for the coming week. High temperatures and rainy weather conditions have kept terminal demand relatively stable, while purchases in the sector seem to depend on the demand situation.
Overall, the steel billet market is currently following an unstable course. In the absence of a significant revival on the demand side, a strong momentum for price increases is not expected.
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