Chinese domestic steel section prices mostly move down slightly

Chinese domestic steel section prices have mostly softened slightly during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have increased during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,450/mt ($699/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,470/mt ($702/mt), while the price of 20MnSi billet is at around RMB 4,550/mt ($715/mt). The prices are all ex-mill, including 13 percent VAT.

Most steel section traders in the Chinese domestic market have chosen to reduce their prices slightly in the past week due to weak demand, despite the increases seen in billet prices, as they have sought to close more deals and keep their inventories at low levels. Supply has recovered a little and market inventory has increased, which exerts some pressure on steel section prices. As for the week ahead, considering the low trading activity, it is believed that domestic steel section prices may move down by a small margin.

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

$1 = RMB 6.365