Chinese domestic steel section prices keep moving up

Chinese domestic steel section prices have again followed an upward trend during the past week. 

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed an upward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,550/mt ($494/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,570/mt ($497/mt), while the price of 20MnSi billet is at around RMB 3,650/mt ($508/mt). The prices are all ex-mill, including 13 percent VAT. 

Overall trading activity in the Chinese steel section market has increased in the past week and is considered to be at normal levels. Producers’ profit margins are increasing and so their production volumes have also increased. Upstream billet prices have continued their upward trend, providing strong support for steel section prices. Lately, steel futures prices have been rising strongly due to positive macroeconomic news and so most steel product prices have followed the same trend. As for the week ahead, considering that demand may decline slightly due to the off-season and the weather getting cold, it is believed that steel section prices may just fluctuate slightly. 

The prices are all ex-mill, including 13 percent VAT. 

$1 = RMB 7.180