Local Chinese semi-finished steel market impacted by soft finished steel prices

During the week ending June 9, domestic semi-finished steel prices in China have indicated a downtrend in terms of billet prices, though slab prices have moved sideways, while transaction activity in the overall market has been at slack levels. Average prices of steel billet and slab in the local Chinese market are presented in the following table.
 
During the given week, the declining trend in finished steel prices has negatively affected most semi-finished steel prices, reducing the profitability of semi-finished steel producers.  As for the coming period, the traditional off-season for the steel industry due to the hot summer weather will exert downward pressure on ferrous metal prices. Although iron ore prices have indicated a rebound in the given week, the ongoing downtrend of finished steel prices has offset the support from the iron ore side. It is expected that semi-finished steel prices in the Chinese domestic market will move on a soft trend in the coming week. 

 

Product Name	Spec.	Category	City	Price (RMB/mt)	Price ($/mt)	Weekly Change (RMB/mt)
Billet	12 mm x 12 mm	Q195-Q235	Tangshan	2,020	325	0
			Jinzhong	1,960	316	↓30
			Fuzhou	2,020	325	↓30
			Jiangyin	2,050	330	↓70
			Average price	2,013	324	↓33
Billet	12 mm x 12 mm	20 MnSi	Tangshan	2,140	345	0
			Jinzhong	2,070	333	↓30
			Fuzhou	2,120	341	↓30
			Jiangyin	2,150	346	↓70
			Average price	2,120	341	↓33
Slab	250*1800*6000	Q235	Tangshan,Hebei	2,020	325	0

 

The prices are on actual weight basis, 17 percent VAT is included in all prices and all prices are ex-warehouse.
 
$1 = RMB 6.21