Chinese domestic steel section prices mostly start to move down

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

As for billet, prices of the semi-finished steel product in the Chinese domestic market have also decreased during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 5,984/mt ($930/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 5,920/mt ($921/mt), while the price of 20MnSi billet is at around RMB 6,004/mt ($934/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the local Chinese steel section market has been weak. Upstream billet prices have declined following previous sharp rises, and this is the main factor which has caused steel section prices to soften. Section production volumes are still at high levels since profits are good, but the demand side has resumed a wait-and-see stance due to the large fluctuation in prices. As for the week ahead, considering the recent influence of macroeconomic policy on raw material prices, it is believed that steel section prices in China may continue to move down in the coming week.

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

$1 = RMB 6.431