Chinese domestic steel section prices fall further

Chinese domestic steel section prices have continued their declining trend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have continued to soften during the past seven days. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,830/mt ($752/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,850/mt ($756/mt), while the price of 20MnSi billet is at around RMB 4,930/mt ($768/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity for steel sections in China has been slack in the past week. Prices of billet prices and other raw materials have declined, causing steel section prices to follow suit. Traders mostly hold a negative view of the prospects for the steel section market and have been willing to offer lower prices in order to close more deals and reduce their stock levels. Supply has risen slightly but is still influenced by production restrictions in certain areas of the country. As for the week ahead, considering that demand may remain weak and even weaken further, it is believed that steel section prices will continue their downward trend.

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

$1 = RMB 6.419