Chinese domestic steel section prices continue their downward trend

Chinese domestic steel section prices have continued their downward trend during the past week. 

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed a fluctuation with reduce trend during the past seven days. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,300/mt ($468/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,320/mt ($470/mt), while the price of 20MnSi billet is at around RMB 3,400/mt ($482/mt). The prices are all ex-mill, including 13 percent VAT. 

Local Chinese steel section prices have declined by relatively large margins during the past week, against the backdrop of declines in steel futures and billet prices. Overall trading activity has been sluggish given the offseason and the ongoing downtrend of prices. Production volumes have not declined lately since raw material prices have continued to move down. As for the week ahead, it is believed that steel section prices may indicate minor fluctuations during the coming week.  

The prices are all ex-mill, including 13 percent VAT. 

$1 = RMB 7.058