Chinese domestic steel section prices keep moving down

Chinese domestic steel section prices have continued their downward trend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have kept a downward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,480/mt ($668/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,500/mt ($671/mt), while the price of 20MnSi billet is at around RMB 4,580/mt ($683/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese steel section market has remained weak even though prices have continued to fall in recent weeks. Declines in billet prices have contributed to the decreases in steel section prices in the past seven days. Supply has lately increased, but the demand side has remained weak amid coronavirus restriction measures. As for the week ahead, as demand may remain slack amid negative weather conditions, it is believed that steel section prices may continue to soften.

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

$1 = RMB 6.705