Chinese domestic steel section prices increase

Chinese domestic steel section prices have indicated an upward trend during the past seven days.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have increased during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,450/mt ($687/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,470/mt ($690/mt), while the price of 20MnSi billet is at around RMB 4,550/mt ($702/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese domestic steel section market has increased and is currently at normal levels. Prices of billet and other raw materials have indicated an upward trend, causing most traders of steel sections to follow suit. Market inventory levels have increased slightly, while demand has recovered recently. At the same time, production restrictions have been imposed in northern China. As for the week ahead, it is believed that domestic steel section prices may fluctuate at high levels, while downstream buyers may adopt a wait-and-see stance given the high levels of prices.

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

$1 = RMB 6.480