Chinese domestic steel section prices mostly stable

Chinese domestic steel section prices have indicated a mostly stable trend in the past week, with slight upticks also seen.

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 3,530/mt ($504/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,550/mt ($507/mt), while the price of 20MnSi billet is at around RMB 3,630/mt ($519/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the local Chinese steel section market has been at normal levels in the past seven days. Reductions in production volumes and increases in upstream billet prices have continued to support the steel section market. Since there is still some weakness on the demand side, traders have mostly been reluctant to raise their prices. As for the week ahead, considering the fact that support from costs is still strong, it is believed that domestic steel section prices may fluctuate, with some slight increases possible.

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

$1 = RMB 6.998