Chinese domestic steel section prices follow an upward trend

Chinese domestic steel section prices have increased during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have fluctuated on an upward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,570/mt ($498/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,590/mt ($500/mt), while the price of 20MnSi billet is at around RMB 3,670/mt ($512/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has improved slightly but is still considered to be weak, while prices have risen on the back of higher prices of billet and other raw materials. Some producers are planning to reduce their production volumes. The demand side is still maintaining a wait-and-see stance and only purchasing in line with needs. As for the week ahead, considering the support from the cost side and the possible recovery of demand, it is believed that steel section prices may indicate further upticks.

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

$1 = RMB 7.174