Chinese domestic steel section prices fluctuate in downward direction

Chinese domestic steel section prices have declined amid some fluctuations during the past seven days.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have fluctuated on a downward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,940/mt ($772/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,960/mt ($775/mt), while the price of 20MnSi billet is at around RMB 5,040/mt ($788/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has increased in the past week though it has remained weak due to the relatively big fluctuations seen in prices. Upstream raw material prices have recently declined both in the spot and futures market, and this is the main reason which caused steel section prices to move down. Supply volumes have been impacted by production restrictions, while demand is weak due to the off-season. As for the week ahead, it is believed that domestic steel section prices may indicate further fluctuations.

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

$1 = RMB 6.396