Chinese domestic steel section prices mostly increase

Chinese domestic steel section prices have mostly maintained an upward trend during the past seven days.

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 x 150 mm square billet is at RMB 3,570/mt ($507/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,590/mt ($510/mt), while the price of 20MnSi billet is at around RMB 3,670/mt ($521/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese domestic steel section has slackened in the past week and been at low levels due to the off-season and the ongoing upward trend of prices, which has been supported by increases in billet prices and in rebar spot and futures prices. However, with market inventory still at high levels and demand still weak, the increase margins of steel section prices have been relatively small. As for the week ahead, it is believed that domestic steel section prices will indicate further slight increases, supported by rises in prices of rebar and other steel products.

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

$1 = RMB 7.040