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China’s steel prices are set to be buoyed by billet price in Tangshan City. The billet price approached a six-year high due to sustained environmental restriction in Tangshan.

Billet prices began the rise from 3,240 yuan/mt on March 24, the lowest level this year.

Following the gain of 50 yuan/mt on August 13 to 4,000 yuan/mt, it is expected that Tangshan billet price to hit a new high this year.

Sources said that production cut on blast furnaces in Fengnan district, Tangshan City rose to 50% last weekend, from the previous 20-37.5% cut. All blast furnaces in Tangshan including urban areas Fengnan and Fengrun districts, are conducting 50% production cut as of Monday. 

Besides, rebar prices in Hangzhou have generally moved in line with steel billet prices. The rebar price started to climb up from a low of 3,500 yuan/mt on March 26. It touched a high of 4,400 yuan/mt as of August 13, up 520 yuan/mt from the end of May, and up 900 yuan/mt from late March.

• [Editor:Wang Linyan]