Transaction activity slows down in local Chinese semi-finished steel market

Wednesday, 27 May 2015 12:29:28 (GMT+3)   |   Shanghai
       

During the week ending May 26, domestic semi-finished steel prices in China have mostly indicated a downtrend, except in Fuzhou, Fujian, while transaction activity in the overall market is lower than in the previous week, though it remains at decent levels. Average prices of steel billet and slab in the local Chinese market are presented in the following table.

During the given week, the downtrend in finished steel prices in China has negatively affected domestic semi-finished steel prices. Meanwhile, steelmakers are less inclined to roll semi-finished steel into finished steel due to the decline in finished steel prices, resulting in reduced demand for semi-finished steel. Although in the medium and longer term, China's investments in more infrastructure projects will stimulate demand for finished steel, in the short term finished steel prices will likely edge down, which will exert a negative impact on semi-finished steel prices. Lately, iron ore prices have moved on a stable trend, which may provide a certain degree of support for semi-finished steel prices. It is expected that semi-finished steel prices in the Chinese domestic market will move on a slight downtrend 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

326

↓30

Jinzhong

1,990

321

↓30

Fuzhou

2,050

331

0

Jiangyin

2,120

342

↓30

Average price

2,045

330

↓23

Billet

12 mm x 12 mm

20 MnSi

Tangshan

2,140

345

↓30

Jinzhong

2,100

339

↓30

Fuzhou

2,150

347

0

Jiangyin

2,220

358

↓30

Average price

2,153

347

↓23

Slab

250*1800*6000

Q235

Tangshan,Hebei

2,020

326

0

                                                                                 

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

$1 = RMB 6.20


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