Activity remains slack in Chinese domestic semi-finished steel market

During the week ending December 6, Chinese domestic semi-finished steel prices have mostly moved up, though billet prices have remained stable in Tangshan, Hebei Province, while transaction activity in the market has remained at low levels. Average prices of steel billet and slab in the local Chinese market are presented in the following table.

During the given week, domestic prices of rebar, wire rod and iron ore have increased, exerting a positive impact on semi-finished steel prices in China. However, transaction activities for semi-finished steel have been at low levels as buyers and sellers have been unwilling to conclude transactions. Recently, the Chinese authorities have been shutting down many intermediate frequency melting furnaces within the scope of environmental protection measures, which will reduce production of semi-finished steel, providing support for prices in the semi-finished steel market. It is thought that semi-finished steel prices in the Chinese domestic market will likely continue their upward trend in the coming week.

All prices are ex-warehouse and on actual weight basis and include 17 percent VAT.
 
$1 = RMB 6.89