Chinese domestic steel section prices continue to fall

Chinese domestic steel section prices have continued a downward trend during the past seven days.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have softened slightly during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,570/mt ($685/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,590/mt ($688/mt), while the price of 20MnSi billet is at around RMB 4,670/mt ($699/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section has remained weak. Prices of billet and other raw materials have moved down during the past week, contributing to the downtrend of steel section prices. Supply volumes of steel sections have increased following the easing of Covid-19 restriction measures. Given low demand, most traders have been willing to reduce their prices in order to close more deals. As for the week ahead, considering the weak demand and increasing supply, it is believed that steel section prices may continue their downward trend.

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

$1 = RMB 6.676