Chinese domestic steel section prices follow a soft trend

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

As for billet, prices of the semi-finished steel product in the Chinese domestic market have decreased by a large margin compared to the pre-holiday period. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,090/mt ($442/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,110/mt ($445/mt), while the price of 20MnSi billet is at around RMB 3,190/mt ($457/mt). The prices are all ex-mill, including 13 percent VAT.

Due to the extension of the holiday amid the outbreak of the coronavirus, most market players have not started work yet. With large declines seen in the futures market and in financial markets, upstream billet prices have indicated sharp decreases in certain parts of the country. Most domestic steel section prices have only softened slightly since trading activity has been at very low levels, with traders believing that large reductions will not lead to an improvement in demand. As for the week ahead, trading activity may improve slightly, though pressure from inventory will remain high. Overall, it is believed that domestic steel section prices may follow a downward trend again during the coming week.

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

$1 = RMB 6.986