Chinese domestic steel section prices increase slightly

Chinese domestic steel section prices have moved up slightly week on week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have softened by a small margin during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,510/mt ($504/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,530/mt ($507/mt), while the price of 20MnSi billet is at around RMB 3,610/mt ($519/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section has been weak, while inventory levels have increased amid normal supply but poor demand. Billet prices have indicated small downticks in the past week, while prices of other raw materials had first increased but then started to soften later in the week. As for the week ahead, considering the reductions seen in recent days in prices of billet and raw materials both in the futures and spot markets, it is believed that domestic steel section prices will move down slightly.

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

$1 = RMB 6.965