Chinese domestic steel section prices mostly stable

Chinese domestic steel section prices have been mostly stable during the past week, though with minor upticks and downticks also seen in some parts of the country.

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 3,150/mt ($448/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,170/mt ($451/mt), while the price of 20MnSi billet is at around RMB 3,250/mt ($463/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese domestic steel section market has increased slightly in the past seven days, but is still mostly at very low levels. Steel section futures prices have rebounded, providing a certain degree of support for steel section spot prices. Activity in local markets in some parts of the country has recovered better than in others, causing prices in these areas to show a rebounding trend. But most traders have chosen to hold their prices stable and are waiting for a recovery of demand on the downstream side. As for the week ahead, inventory is still at high levels but market activity is starting to recover these days: accordingly, it is believed that steel section steel prices may fluctuate during the coming week, with some slight rebounds possible.

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

$1 = RMB 7.025