Chinese domestic steel section prices edge up slightly

Chinese domestic steel section prices have edged up slightly week on week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have declined by small margins week on week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,410/mt ($481/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,430/mt ($484/mt), while the price of 20MnSi billet is at around RMB 3,510/mt ($495/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has slackened slightly in the past week, especially when prices had risen a little towards the end of the week. In the past week, upstream billet prices and other raw material prices first increased and then softened both in the spot and futures markets, causing most steel section traders to also follow the fluctuating trend. Some traders are willing to offer discounts in order to close more deals. As for the week ahead, considering costs strongly support market prices and that market inventory pressure is relatively small, it is believed that domestic steel section prices may increase by a small margin.

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

$1 = RMB 7.088