Chinese domestic steel section prices decrease further

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 continued to decrease during the past seven days. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,590/mt ($718/mt), the price of 165 mmx 225 mm rectangular billet stands at RMB 4,610/mt ($721/mt), while the price of 20MnSi billet is at around RMB 4,690/mt ($733/mt). The prices are all ex-mill, including 13 percent VAT.

Prices of billet and other raw materials have declined sharply in the past week, causing steel section prices to follow suit. Overall trading activity is still slack, leading most traders to hold a negative view and to be willing to offer lower prices in order to close more deals and reduce their stock levels. Supply is weak but this is insufficient to support steel section prices. As for the week ahead, it is believed that steel section prices may continue to soften, though by smaller margins.

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

$1 = RMB 6.396