Chinese domestic steel section prices decrease again

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 softened slightly during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,480/mt ($503/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,500/mt ($506/mt), while the price of 20MnSi billet is at around RMB 3,580/mt ($518/mt). The prices are all ex-mill, including 13 percent VAT.   

Overall trading activity in the domestic steel section market has been sluggish during the past week due to the Labor Day holiday, while upstream billet prices have softened. Most steel section producers have reduced their production volumes. Traders have mostly been willing to offer lower prices in order to close more deals. As for the week ahead, considering both supply and demand are still weak while some raw material prices have showed signs of rebounding, it is believed that steel section prices may move down by a small margin.    

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

$1 = RMB 6.916