Chinese domestic semi-finished steel market moved on rising trend

During the week ending June 28, Chinese domestic semi-finished steel prices have indicated upward movement, while transaction activity in the overall market is still at low levels. Average prices of steel billet and slab in the local Chinese market are presented in the table below.

Against the backdrop of news of the planned merger between Baosteel Group and Wuhan Iron and Steel Group, steelmakers and traders in China have increased their semi-finished steel offer prices in the past week. Meanwhile, previous output cuts by steelmakers have had an impact, lowering the supply pressure on the semi-finished steel market and providing support for domestic semi-finished steel prices. Currently, bullish sentiment still prevails in the finished steel market and this has also provided support for semi-finished steel prices. However, real demand for finished steel and semi-finished steel in China has not improved. It is thought that semi-finished steel prices in the Chinese domestic market may just indicate slight upticks in the coming week.

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