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 seven days. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 5,420/mt ($841/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 5,440/mt ($844/mt), while the price of 20MnSi billet is at around RMB 5,520/mt ($856/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity for steel sections has been at normal levels. Prices of billet and other raw materials showed an upward trend during the national holiday period, causing steel section prices to follow. Meanwhile, production volumes of steel sections have risen slightly but are still on the low side, which also provides strong support for prices. As for the week ahead, considering demand may improve after the holiday period, it is believed that steel section prices may fluctuate on an upward trend, though the high levels of prices may cause downstream buyers to be more cautious.

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

$1 = RMB 6.448