Chinese domestic steel section prices mostly increase

Chinese domestic steel section prices have mostly moved upwards during the past week, though some few downticks have also been seen.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have risen in the past seven days. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,690/mt ($565/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,710/mt ($568/mt), while the price of 20MnSi billet is at around RMB 3,790/mt ($580/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. Increases in prices of billet and other raw material prices have led most steel section producers to raise their quoted prices. However, weak demand in a few areas have led to downticks in some prices. Traders are concerned that the winter off-season will cause demand to weaken and so they are reluctant to increase their stock levels. As for the week ahead, considering that demand may weaken, it is believed that domestic steel section prices may soften slightly.

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

$1 = RMB 6.536