Chinese domestic semi-finished steel market moves up further

During the week ending February 28, Chinese domestic semi-finished steel prices have indicated upward movement, while transaction activity in the overall market 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, bullish sentiment still prevails in the domestic finished steel market where prices continue to rise, exerting a positive impact on domestic semi-finished steel prices. Meanwhile, with the weather getting warmer, rolling mills have gradually increased their purchases and inquiries, thereby providing support for semi-finished steel prices and boosting the confidence among players in the semi-finished steel market. However, it is heard that China's National Development and Reform Commission (NDRC) has started an investigation against excessive speculation in relation to commodities (the investigation has not yet been confirmed by the Chinese authorities), and this has exerted a negative impact on the ferrous futures market in China. It is thought that semi-finished steel prices in the Chinese domestic market will likely move sideways in the coming week.

All prices are ex-warehouse and on actual weight basis and include 17 percent VAT.
 
$1 = RMB 6.87