Chinese domestic semi-finished steel market continues its rising trend

During the week ending November 8, Chinese domestic semi-finished steel prices have moved on an overall rising trend, while transaction activity in the market has remained at low-to-medium levels. Average prices of steel billet and slab in the local Chinese market are presented in the following table.
 
During the given week, coke prices in both the spot market and futures market in China have surged up strongly, pushing up prices of iron ore and scrap, and boosting semi-finished steel prices from the cost side. Meanwhile, as bullish sentiment still prevails in the domestic finished steel and raw materials markets, Chinese steelmakers have increased their offer prices for semi-finished steel. However, since there are limited supplies entering the market from the steelmakers' side, transaction activity in the market has been at low-to-medium levels. It is expected that domestic semi-finished steel prices in China will move up further in the coming week.

All prices are ex-warehouse and on actual weight basis and include 17 percent VAT.
 
$1 = RMB 6.77