Chinese domestic steel section prices fluctuate slightly

Chinese domestic steel section prices have fluctuated by small margins in the past seven days.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have moved up slightly during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,400/mt ($481/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,420/mt ($484/mt), while the price of 20MnSi billet is at around RMB 3,500/mt ($495/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese domestic steel section market has been at low levels in the past week. Since inventories are not high, most traders have only decreased their quoted prices slightly, though upticks in billet prices have led certain traders to raise their steel section prices. Downstream demand is still influenced by bad weather and has remained at low levels, leading some traders to offer certain discounts. As for the week ahead, considering the support from billet prices and the weakness of demand, it is believed that local steel section steel prices may again just indicate minor fluctuations.

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

$1 = RMB 7.066