Chinese domestic steel section prices fluctuate on slight downtrend

Chinese domestic steel section prices have fluctuated on a slight downtrend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have increased slightly during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,410/mt ($492/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,430/mt ($495/mt), while the price of 20MnSi billet is at around RMB 3,510/mt ($507/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the local Chinese section market has been at low levels due to the approaching Chinese New Year holiday. Some traders have chosen to slightly lower their quoted prices in order to collect more cash before the holiday. Also, low trading activity has caused some traders to be unwilling to change their prices. Upstream billet prices have increased by a small margin, which gives certain support to steel section market prices. As for the week ahead, considering the approach of the holiday period, section steel market prices may mostly follow a stable trend, with certain traders slightly reducing their prices.

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

$1 = RMB 6.926