Billet is the product of molten steel from steel making furnace after casting. In terms of manufacturing technology, steel billet can be divided into two types: die casting billet and continuous casting billet. Billet refers to steel products that cannot be directly supplied to society. The distinction between billet and steel has a very strict standard, which can not be used as the final product of the enterprise, but should be carried out in accordance with the unified standard of the whole society. In general, billets are easy to distinguish, but some billets, of the same size and use as steel (e.g. rolled tube billets), can be processed depending on whether they are used in other industries, whether they have been processed by steel processes, and whether they have been processed by a finished mill. This week, the domestic steel market shows a trend of falling after rising. Trading volume has increased significantly compared to last week. This week, the supply and demand of billet both increased, while the downstream construction accelerated, the contradiction between supply and demand will be reversed, while the downstream demand gradually recovered, and the gap between supply and demand will be further expanded in the future. However, considering that the billet itself and the downstream steel rolling enterprises’ warehouse are still at a high level, the pressure of inventory reduction is relatively large, and at the same time, the overall profit level is low, and the construction industry demand starts slowly, or restrict some demand release speed. And steel companies, because they are still losing money, so the cost of support remains. Recently, a series of projects started on the market has had a positive impact. However, despite the recent easing of international inflation indicators, there are still some countries’ interest rate hike expectations have not changed, which may have a negative impact on commodity markets. Overall, the domestic steel industry this week will be a shock to the market.
Post time: Mar-01-2023