With the domestic steel market prices fall, domestic billet market also appeared down a certain extent, but due to high raw material prices and other reasons, billet prices encountered some support. In this case, the recent domestic steel billet market price stability with a slight adjustment.
According Shinkansen data monitoring display, now on the market in Tangshan area 20MnSi billet price 3750 yuan / ton; Shanxi 20MnSi billet price 3700 yuan / ton; Liaoning Province 20MnSi billet price 3750 yuan / ton; Handan 20MnSi billet price 3,800 yuan / ton; Shanghai area 20MnSi billet price 3880 yuan / ton; Jiangsu Province 20MnSi billet price 3920 yuan / ton; Shandong Province 20MnSi billet price is 3820 yuan / ton: billet market, Q235 common carbon billet price in Tangshan to 3765 yuan / ton, Shanxi Q235 common carbon billet price of 3,600 yuan / ton, Shandong Q235 common carbon billet price is 3730 yuan / ton. From the market performance over the term, are the price change.

Currently billet market ups and downs in a dilemma. On the one hand, continued to call back so that the downstream industry market significantly weakened billet demand. Early in short supply situation is no longer present, the downstream buyers wait and see mood as the market prices continued to call back more obvious, now basically stopped buying, billet producers plant inventory began to increase.

While reducing exports, the domestic sales increased pressure. August 2007 China's exports of billet resources 120,000 tons, compared with 360,000 tons in July, decreased by 24 million tons, 66.66 percent lower than the ring. Compared with the same period last year 440,600 tons, reducing 320,600 tons, representing a decrease of 72.76%. This year 1--8 January China's total exports of 2.51 million tons of billet resources to the same period last year compared to 2.19 million tons, an increase of 320,000 tons, an increase of 14.61%.

Weak demand resulted in lower market prices. However, the current high prices of raw materials, if billet prices sale, it means a loss, billet producers said that the current corporate purchasing ore price is very high, especially when they are available ore trade, import agreement than large mills the price is much higher than mine, resulting billet production costs soar. So while the situation, and some chose to billet production enterprises cut, cut, so the inventory of resources to some extent eased.

In addition, the current international market is still up more than billet, billet demand is relatively strong. Recently, increasing the Persian Gulf rebar re-rolling the needs of manufacturers, eat billet supply tight, prices rise, the Persian Gulf region is now trading price of imported billet at $ 570-580 / ton (CFR), a UAE importers, said the UAE every year about 400,000 tons of billet imports from China, but since China imposed tariffs, almost no imported. This week trading price of imported billet in Southeast Asia reached US $ 580 / ton to $ 585 / ton (CFR), most of which traded at $ 580 / ton to $ 583 / ton (CFR), in particular Malaysia producing billets. Chinese billet due to the interruption of supply, Southeast Asian billet import prices rose rapidly. Chinese billet current price is $ 580 / ton to $ 585 / ton (FOB), or US $ 600 / ton (CFR) or more, and some traders said the number of Chinese billet offer has been reduced. International market's strength on the domestic market is also a strong support.

Overall, the weak downstream demand continues, while the decline in value of iron ore and other raw materials did not mean, in this environment, stable and slightly adjust the pattern will continue.