Chinese domestic steel section prices continue to decrease

Chinese domestic steel section prices have declined during the past week. Overall trading activity has been at a low level. Section prices mostly followed a decreasing trend at the beginning of the past week, but, with the rebounding of iron ore and billet prices, most traders subsequently chose to keep their quotations stable or raise them slightly. Downstream demand has slightly increased but is still weak. 

As for billet, prices of the semi-finished steel product in the Chinese domestic market have fluctuated in an upward direction during past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,380/mt ($477/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,400/mt ($480/mt), while the price of 20MnSi billet is at around RMB 3,480/mt ($491/mt). The prices are all ex-mill, including 13 percent VAT.

As for the week ahead, considering demand may improve slightly and that supply volumes have not been influenced by environmental measure, it is believed that domestic section steel prices may mostly fluctuate within a limited range.

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

$1 = RMB 7.09