Chinese domestic steel section prices follow a soft trend

Chinese domestic steel section prices have continued their downward movement during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have continued a fluctuation with downward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,480/mt ($485/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,500/mt ($488/mt), while the price of 20MnSi billet is at around RMB 3,580/mt ($499/mt). The prices are all ex-mill, including 13 percent VAT.

In the domestic steel section market, demand has remained weak and overall trading activity is still low due to the off-season as well as the due to the impacts of the floods and typhoons in northern China. The weakness of billet prices and decreases in futures prices have also exerted some downward pressure on steel section prices, leading most steel section traders to reduce their quoted prices. As for the week ahead, considering the ongoing weakness of demand and the weaker support from the cost side, it is believed that steel section prices may continue to follow a downward trend.   

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

$1 = RMB 7.169