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Tangshan billet sales and consumption (May 8-12)
May 16, 2017  10:20:03
Abstraction: According to the survey of more than 20 sampled steel mills in Tangshan, Qinhuangdao and Changli, the average daily trading volume of steel billet stayed at around 90,000 tonnes, moving up 19,000 tonnes from a week ago.
Billet sales According to the survey of more than 20 sampled steel mills in Tangshan, Qinhuangdao and Changli, the average daily trading volume of steel billet stayed at around 90,000 tonnes, moving up 19,000 tonnes from a week ago. The daily consumption of billet in steel rolling mills based in Tangshan region totalled 83,700 tonnes, decreasing 12.9% compared with a week ago. Recently, many rolling lines of some blast furnace mills were suspended for maintenance, therefore daily sales of billets picked up markedly. The supply tightness greatly eased. So, steel re-rollers expressed little interests in buying in new billets, especially after the price moved up high. . Table-1 Daily sales of Tangshan-produced billets Source: Mysteel Data, Tangshan Office Down-stream consumption 19 of the 30 strip production lines in 25 145mm strip steel mills were overhauled or suspended this week, reducing a total output of 256,200 tonnes. The operating rate this week stood at 36.67%, flat with a week ago and the capacity utilisation rate at 36.35%, down 3.1% week-on-week. 11 of the 28 strip production lines in 20 232 mm strip steelmakers were overhauled or suspended, which reduced an estimated 212,100 tonnes of capacity. The operating rate this week stood at 60.71%, up 3.57% week-over-week and the capacity utilisation rate at 61.71%, declining 0.9% as compared to last week. 46 of the 71 section production lines in Tangshan were operating this week. The operation rate descended 1.41% to 64.79% this week, whereas capacity utilisation rate sat at 71.97%, moving down 1.69%. Operating rate generally headed down, except for I-beam rolling lines. Since steel rolling mills owners generally hold negative view on the latter market as the price declined in the early week, they slowed down the pace of production. Table-2 Down-stream billet consumption (by product) Source: Mysteel Data, Tangshan Office -Edited by Olivia Zhang (zhangwd@mysteel.com) ...

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