Chinese domestic steel section prices increase

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 increased during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 5,170/mt ($798/mt), the price of 165 x 225 mm rectangular billet stands at RMB 5,190/mt ($801/mt), while the price of 20MnSi billet is at around RMB 5,270/mt ($813/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel market has increased in the past week and is currently at normal level. Although supply has increased, prices of billet and other raw materials have risen, causing most steel section prices to rise also. Demand is still weak due to the off-season, but traders are willing to purchase in order to make a profit since raw material future prices have increased amid positive macroeconomic signals. As for the week ahead, it is believed that steel section prices in China may fluctuate on an upward trend.

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

$1 = RMB 6.479