Tangshan Billet Holds at Yuan 3,000/t as Demand Rises
Tangshan Q235 billet prices were unchanged during September 21–27, with Mysteel assessing 150 mm square billet at Yuan 3,000/tonne ($447/t) EXW including 13% VAT on September 27. Re-roller consumption improved for a second week, but persistent losses continued to limit billet purchasing.
- Billet price: Q235 150 mm square billet held at Yuan 3,000/t ($447/t) EXW including 13% VAT on September 27.
- Re-roller consumption: Rose 6.6% week over week to an average 45,200 tonnes/day.
- Re-roller inventories: Remained broadly stable at 705,000 tonnes as of September 23.
- Commercial inventories: Fell 1.3% week over week to 1.5 million tonnes as of September 24.
- Mill billet sales: Declined 9.9% to an average 34,500 tonnes/day during September 18–24.
Tangshan's billet market showed improving physical consumption without a corresponding price breakout. Re-roller usage increased for a second week and commercial stocks declined, but processors remained loss-making and continued to buy largely for immediate needs. That combination helps explain why Yuan 3,000/t held despite pre-holiday restocking expectations: demand improved, but not enough to overcome weak finished-steel margins. The balance entering China's National Day holiday therefore remained fragile rather than decisively bullish.
Billet prices in Tangshan, North China's Hebei province, remained largely stable during the week of September 21–27, 2026.
Mysteel assessed Q235 150 mm square billet at Yuan 3,000/tonne ($447/t) on September 27, unchanged from one week earlier.
The assessment was on an EXW basis and included China's 13% VAT.
Higher Consumption Fails to Lift Billet Price
Mysteel attributed the stable billet price to cautious market sentiment, with relatively firm cost support offset by weak sales of finished steel products produced from billet.
Billet demand among Tangshan re-rollers nevertheless improved for a second consecutive week ahead of China's National Day holiday from October 1–7.
Billet consumption among the 34 Tangshan re-rollers tracked by Mysteel averaged 45,200 tonnes/day during September 17–23.
That represented a weekly increase of 6.6%, or 2,800 tonnes/day.
| Indicator | Latest Reading | W/W Change |
|---|---|---|
| Q235 150 mm billet | Yuan 3,000/t | Unchanged |
| Re-roller billet consumption | 45,200 t/d | +6.6% |
| Re-roller billet stocks | 705,000 tonnes | +500 tonnes |
| Commercial billet stocks | 1.5 million tonnes | -1.3% |
| Mill billet sales / exports | 34,500 t/d | -9.9% |
Re-Roller Losses Keep Purchases Need-Based
Despite higher billet consumption, persistent losses among Tangshan re-rollers prevented processors from substantially increasing purchases.
Mysteel said most re-rollers continued to procure billet primarily on a need-to basis rather than building larger inventories ahead of the holiday.
Stocks held by the 34 re-rollers in Mysteel's survey therefore remained broadly unchanged at 705,000 tonnes as of September 23.
That represented an increase of only 500 tonnes from the previous week.
Commercial Billet Stocks Fall 1.3%
Billet inventories held at the three warehouses and two ports in Tangshan monitored by Mysteel moved lower during the week.
Commercial stocks totaled approximately 1.5 million tonnes as of September 24, down 1.3%, or 19,200 tonnes, from the previous week.
The decline in commercial inventories occurred as re-roller consumption improved, although overall trading activity remained subdued.
Local Mills Reduce Billet Sales 9.9%
Muted spot trading also led some Tangshan steelmakers to reduce the volume of billet offered or sold into the market.
Billet sales or exports by the 21 mills in Tangshan and surrounding areas monitored by Mysteel averaged 34,500 tonnes/day during September 18–24.
That represented a decline of 9.9%, or 3,800 tonnes/day, from the previous week.
| Mysteel Survey | Latest Level | Weekly Movement |
|---|---|---|
| 34 re-rollers: billet use | 45,200 t/d | +2,800 t/d |
| 21 mills: billet sales / exports | 34,500 t/d | -3,800 t/d |
Mysteel Sees Slight Downside Risk After Holiday Restocking
Mysteel's analyst expected Tangshan billet prices to soften slightly in the near term.
The analyst said billet supply was likely to remain relatively low, but worsening losses on finished-steel sales could cause some re-rollers to suspend production, weakening billet demand.
At the same time, relatively firm production costs were expected to limit the extent of any short-term price decline.
The late-September data therefore showed a market supported by costs and improving pre-holiday billet consumption, but constrained by weak finished-steel profitability and cautious purchasing among re-rollers.
Primary source: Mysteel Global.
