After the Spring Festival, Chinese Billet Become Monkey King Break Through The Sky

This year is Monkey year in Chinese traditional Zodiac year. It seems that this Monkey year bring good news to Chinese steel market. Only within a few days after Spring Festival, Chinese billet market rose 13 USD /T. Investigate its rise for three reasons:

1.Blast furnace operating rate is low. Pre-holiday blast furnace maintenance more and blast furnace operating rate less than 85%. The average product more than 5% lower compared with last year.

2.Billet steel inventory is less. After Festival Chinese Billet market inventory is less than 60 0,000 tons. Billet market inventory is less than over 50% compared last year inventory.

3.The rolling plant raw material low inventory. Because Rolling Plant have holiday late, it increase output. Meanwhile, some companies lack of confidence in the market after Festival and did not fill the inventory timely, their inventory is relatively low. With downstream moderate replenishment, it makes the rolled material transactions volume rise. Particularly, the transaction for shape steel is comparatively good, and the market showing gains.

Although the blast furnace to resume production after the holiday phenomenon has increased, some part of the early manufacturers on the verge of collapse is expected to resume production. However, in the short term the demand is too concentrated, and the resumption of production of blast furnace is not an easy thing, Chinese billet market remains tight in short-term. The market is expected to continue pull up. But…..The problem comes up, inevitably some people begins cautious worried, will the Monkey King of Chinese billet break through the sky? In fact, some region billet is still loss in production for a long time, even though the immediate short-term raise can’t make some mills get rid of the shackles of losses. Spring blossoms, let the monkey of Chinese billet jumping tap for some time now, the steel industry has long been frozen and need such rising trends.

Want to know more? Please contact me freely. China National Building Materials Group Corporation is the full name of CNBM, which is one of the largest state-owned groups in China, and listed in the Fortune 500 Enterprises. We are specialized in stainless steel product, steel billet,hot rolled steel, cold rolled steel etc.

Related Reading:

The Difference between 316 and 316L Stainless Steel