Chinese domestic semi-finished steel market continues its upward trend

During the week ending August 23, Chinese domestic semi-finished steel prices have continued their upward trend, while transaction activity in the overall market has slackened, though remaining at medium levels. Average prices of steel billet and slab in the local Chinese market are presented in the following table.

During the given week, due to the approaching G20 Summit to be held in Hangzhou on September 4-5, production of semi-finished steel has been limited in the middle and lower reaches of the Yangtze River, resulting in a supply shortage in this area, pushing up prices of semi-finished steel in the given region and also having a knock-on effect on prices in the whole country. Meanwhile, the rises seen in coke and scrap prices have pushed up the costs of semi-finished steel production. Currently, bullish sentiment still prevails in the semi-finished steel market. It is thought that semi-finished steel prices in the Chinese domestic market will likely continue their upward movement in the coming week.

The above prices include 17 percent VAT
 
$1 = RMB 6.64