Chinese domestic steel section prices follow a downward trend

Chinese domestic steel section prices have followed a downward trend during the past week.

As for billet, in the past seven days prices of the semi-finished steel product in the Chinese domestic market first decreased but then rebounded, with prices now up slightly on week-on-week basis. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,410/mt ($482/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,430/mt ($485/mt), while the price of 20MnSi billet is at around RMB 3,510/mt ($496/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has been at normal levels during the past week. Decreases in raw material futures prices have contributed to the soft trend of steel section prices. Meanwhile, both supply volumes and market inventories have increased during the past week, though the demand side is still characterized by a certain degree of weakness due to approach of the holiday period and the scarcity of funds as the end of the month approaches. Most traders believe that, even with production restrictions being implemented ahead of the National Day holiday, prices will not increase since market inventory has shown significant increases recently. Overall, it expected that domestic steel section prices may fluctuate on a soft trend during the coming week. 

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

$1 = RMB 7.073