Tangshan billet remains firm after sizeable export sales
Release Date:
2026-04-07
Tangshan billet prices remain firm despite weakening steel futures as steelmakers have ample orderbooks for billet, allowing them to maintain quotes, Kallanish notes.
Spot Tangshan billet prices stood at around CNY 3,040/tonne ($443/t) on Tuesday afternoon – following Monday’s holiday – down by CNY 10/t compared to Monday last week. The most traded, October 2026 rebar contract on the Shanghai Futures Exchange (SHFE) fell by CNY 53/t, indicating that the discount of billet against steel futures has narrowed further.
Local steelmakers have retained ex-work billet prices at CNY 2,980/t versus last week. Major steelmakers in Tangshan have already sold more than 300,000 tonnes of billet for exports with a laycan of May, so they are not lowering prices despite the drop in futures prices.
However, local re-rollers are suffering from the pricing environment. One re-roller tells Kallanish its finished product sales were good on Tuesday, but sales prices were at about CNY 20/t lower than market quotes, eroding rolling profit. The firm will therefore not chase high-priced billet.
Forwards billet was offered at around CNY 3,050/t, or at a CNY 60-70/t discount against the October 2026 SHFE rebar contract on Tuesday.
Market inventories of Tangshan billet stayed at around 2.14 million tonnes on Tuesday, flattish week-on-week.
Indonesian steel mill Desin's 3sp 150mm billet price rose by $10/t to $495/t fob on Tuesday compared to Friday last week.
From: Kallanish
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