China's Billet Market in Mar May Cool down after Warmth
The Tangshan billet market will show an uptrend after the Spring Festival. Affected by the pessimism of Tangshan traders who started business in advance and weak rolled product market after holiday, the billet price has decreased by RMB30/tonne on the first opening day. 2018 pre-arranged off-peak steel production plan in non-heating seasons released on 23th was applied to more cities, leading to the optimism of manufactories and price increase (off-peak period: Mar 16th-Nov 14th; off-peak production ratio: 15% production limitation in main urban area and 10-15% in other areas; objective: 9.875 Mln tonnes by blast furnace capacity). Therefore, the billet price has accumulatively increased by RMB150/tonne compared to the low point after the price increase for few days. However, the billet inventory after the Spring Festival has kept increasing and may reach a new high in recent years. Furthermore, production resumption in Tangshan will be carried out after the heating seasons, so billet supply will increase later.