Chinese domestic steel section prices decrease

Chinese domestic steel section prices have followed a soft trend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have decreased during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,370/mt ($477/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,390/mt ($480/mt), while the price of 20MnSi billet is at around RMB 3,470/mt ($491/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has been at normal levels in the past week, while decreases in billet prices and in steel futures prices in China have contributed to the declining movement of domestic steel section prices. Meanwhile, increases in market inventory and in production volumes have put pressure on steel section prices. As for the week ahead, as the steel futures market rebounded slightly at the end of last week, raw material prices may follow the upward trend, while domestic steel section prices may fluctuate slightly, with some decreases possible due to low demand. 

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

$1 = RMB 7.068