Near six-year high billet to buoy steel prices

SHANGHAI, Aug 14 (SMM) – China’s steel prices are set to be supported as billet prices in Tangshan approached a six-year high due to sustained environmental restriction in the city and Jiangxi province.

Following the gain of 50 yuan/mt on Monday August 13 to 4,000 yuan/mt, SMM expects Tangshan billet price to high a new high this year.

Billet prices began the rise from 3,240 yuan/mt on March 24, the lowest level this year.

Sources told SMM that production cut on blast furnaces in Fengnan district in Tangshan rose to 50% last weakened, from the previous 20-37.5% cut. As of Monday, all blast furnaces in Tangshan, including urban areas Fengnan and Fengrun districts, are running with 50% production cut, SMM learned. 

Rebar prices in Hangzhou have generally moved in line with steel billet prices, according to SMM assessment. The rebar price started to climb up from a low of 3,500 yuan/mt on March 26. It touched a high of 4,400 yuan/mt as of August 13, up 520 yuan/mt from the end of May, and up 900 yuan/mt from late March.