Posted on 03 Dec 2025
Billet prices in Tangshan in North China's Hebei province strengthened last week, with Mysteel's assessment of the price of Q235 150mm square billet in the city rising by Yuan 40/tonne ($5.7/t) on week to reach Yuan 2,990/t EXW including the 13% VAT as of November 30.
Mysteel's survey on the 21 steelmakers in Tangshan and the surrounding area showed that their combined external sales of billets – including export orders - averaged 34,600 tonnes/day over November 21-27, largely steady compared to the week prior.
On the demand front, some local re-rollers continued to ramp up steel production in the past week, driving up their demand for the semis. The daily billet consumption among the 34 re-rollers in Tangshan under Mysteel's coverage increased by 2.4% or 1,300 t/d on week to average 54,300 t/d over November 20-26.
However, strengthening billet prices and their relatively high stocks of the semis suppressed local re-rollers' appetite for billet replenishment, with most consuming in-plant stockpiles instead. As a result, billet inventories held by the 34 re-rollers in Tangshan stood at 559,700 tonnes as of November 26, only down by 1.2% or 6,900 tonnes from a week ago.
For those with restocking needs, they primarily sought low-priced cargoes in the market and made only modest purchases, Mysteel's weekly report noted. Billet stocks at the four commercial warehouses and two ports in Tangshan that Mysteel tracks totalled 1.22 million tonnes as of November 27, retreating by 0.6% or 7,800 tonnes on week.
The rising billet prices in Tangshan slightly eased local steelmakers' losses on billet sales. As of November 28, the steel mills Mysteel monitors in Tangshan suffered an average loss of Yuan 125/t from selling their billets, narrowing by Yuan 46/t from the previous week.
Meanwhile, the per-tonne costs of billet production for those mills averaged Yuan 3,085/t over November 24-28, inching down by Yuan 6/t on week, according to Mysteel's assessment.
Billet prices in Tangshan are expected to be rangebound over December 1-7. Market fundamentals may weaken slightly this week as billet inventories are likely to rise with steady billet supply and declining billet demand, but expectations for supportive policies to be introduced from China's Central Economic Work Conference in December may underpin market sentiment, Mysteel's weekly report predicts.
Source:Mysteel Global
