Chinese domestic steel section prices mostly stable

Chinese domestic steel section prices have indicated a mostly stable trend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have indicated a slight uptrend in the past seven days. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,000/mt ($618/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,020/mt ($622/mt), while the price of 20MnSi billet is at around RMB 4,100/mt ($634/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity for steel sections is weak due to the proximity of the Chinese New Year holiday and most downstream buyers are already on holiday. As for the post-holiday period, most traders may come under pressure from tight funds and be willing to sell. However, since the support from the cost side is still strong, traders may have limited space to reduce their prices. Accordingly, it is believed that steel section prices may just fluctuate slightly after the Chinese New Year holiday, with some minor downticks possible.

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

$1 = RMB 6.468