Chinese domestic semi-finished steel market continues its rising trend

During the week ending August 16, Chinese domestic semi-finished steel prices have continued their upward trend, while transaction activity in the overall market has indicated some improvement and is now 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, purchases of semi-finished steel by rolling mills in China have increased. At the same time, integrated steelmakers themselves need more semi-finished steel due to increases in their finished steel production capacity rates, resulting in a supply shortage in the semi-finished steel market and upward pressure on prices. Meanwhile, despite some downward corrections, ferrous metal futures prices in China have generally increased in the given week, contributing to the bullish sentiment in the domestic semi-finished and finished steel markets. It is thought that semi-finished steel prices in the Chinese market will likely edge up further in the coming week.

The above prices include 17 percent VAT
 
$1 = RMB 6.63