Chinese domestic steel section prices mostly continue to rise

Chinese domestic steel section prices have mostly continued to move upwards during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed an upward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,520/mt ($695/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,540/mt ($698/mt), while the price of 20MnSi billet is at around RMB 4,620/mt ($711/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese steel section market has been at normal levels in the past seven days. Upstream billet prices have fluctuated on an upward trend in the given week, causing steel section prices to follow suit. Meanwhile, the restrictions on production volumes have also provided support for steel section prices. The demand side has mostly maintained a wait-and-see stance since prices have been at high levels. As for the week ahead, considering the support from the cost side is still strong and that the demand side is unlikely to see any strong increase, it is believed that steel section prices may fluctuate on a slight uptrend.

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

$1 = RMB 6.501