Chinese domestic steel section prices fluctuate, slight decrease seen

Chinese domestic steel section prices have mostly followed a slight downtrend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have indicated minor upticks during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,160/mt ($456/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,180/mt ($459/mt), while the price of 20MnSi billet is at around RMB 3,260/mt ($471/mt). The prices are all ex-mill, including 13 percent VAT.

In the local Chinese section steel market, overall trading activity has increased in the past week but is still weak. Most steel section prices rose slightly at the beginning of the past week, but since market inventory kept increasing and as the demand side recovery has not been as good as expected, steel section prices have mostly resumed a soft trend. As for the week ahead, considering the demand side is not back to normal levels yet, it is believed that domestic section steel market prices may move down further.

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

$1 = RMB 6.926