Chinese domestic steel section prices fluctuate slightly

Chinese domestic steel section prices have fluctuated by small margins during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have moved up slightly in the past seven days. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,550/mt ($504/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,570/mt ($507/mt), while the price of 20MnSi billet is at around RMB 3,650/mt ($518/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the local Chinese steel section market has slackened and been at low levels. Upstream billet prices have risen by a small margin, while prices of other long steel products have decreased strongly. Traders of steel sections are still mostly focused on sales and have been willing to offer discounts in order to close more deals. Market inventories have recently declined, providing support for steel section prices. As for the week ahead, considering the offseason and the fact that demand may weaken further, traders mostly hold a negative view. Accordingly, it is believed that domestic steel section prices may follow a slight downtrend during the coming week.

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

$1 = RMB 7.041