Chinese domestic steel section prices decrease slightly

Chinese domestic steel section prices have fluctuated on a slightly soft trend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have moved down by a small margin in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,410/mt ($485/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,430/mt ($488/mt), while the price of 20MnSi billet is at around RMB 3,510/mt ($499/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the local Chinese section steel market in the past week has been at normal levels, while the decreases in billet prices have contributed to the soft trend of section prices. In addition, at the end of the month, most traders chose to make slight price reductions in order to close more deals. Supply volumes have recently been somewhat tighter due to production restrictions. As for the week ahead, it is believed that domestic steel section prices may indicate small fluctuations, with certain local markets seeing a slight rebound due to low market inventories.

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

$1 = RMB 7.038