Chinese domestic steel section prices follow an upward trend

Chinese domestic steel section prices have followed an upward trend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have fluctuated in the past week, edging up slightly week on week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,710/mt ($568/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,730/mt ($571/mt), while the price of 20MnSi billet is at around RMB 3,810/mt ($583/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity has slightly increased in the domestic steel section market but is still weak since prices are at high levels. In the past week, prices of billet and other raw materials first increased, while softening later. Steel section producers mostly increased their quoted prices but supply volumes have decreased slightly. As for the week ahead, considering raw material prices may soften after recent sharp increases, most traders hold a negative view and are not willing to increase stock levels. Accordingly, it is believed that steel section prices in China may fluctuate on a slightly soft trend.

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

$1 = RMB 6.536