Chinese domestic steel section prices mostly stable, some slight upticks also seen

Chinese domestic steel section prices have been mostly stable in the past week, with some slight upticks also seen especially in angle prices.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have softened by a small margin in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,440/mt ($489/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,460/mt ($491/mt), while the price of 20MnSi billet is at around RMB 3,540/mt ($503/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 week. Although billet prices have softened slightly, domestic steel section prices have been supported by the minor increases seen in rebar futures prices and in prices of other raw materials. Steel section prices have rebounded by small margins in certain districts due to a minor improvement in trading volumes against the backdrop of the easing of production restrictions on the downstream side. Considering that costs are still at high levels, traders do not have much space for further reductions in prices. As a result, as for the week ahead it is believed that domestic steel section prices may follow a mostly stable trend, though with some small downticks also possible.

$1 = RMB 7.04