Chinese domestic steel section prices decrease sharply

Chinese domestic steel section prices have indicated significant decreases during the past seven days.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed a downward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,920/mt ($584/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,940/mt ($587/mt), while the price of 20MnSi billet is at around RMB 4,020/mt ($599/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese domestic steel section market has been weak due to the rainy weather in certain parts of the country. Buyers are mostly maintaining a wait-and-see stance since prices continue to fall, with prices of billet and raw materials also moving down. Sharp fall in futures prices have caused many traders to panic and to cut their steel section prices in order to close more deals and reduce stock levels. As for the week ahead, it is believed that steel section prices may continue to fall, but by smaller margins.

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

$1 = RMB 6.712