Chinese domestic steel section prices move down further

Chinese domestic steel section prices have continued their downward trend during the past seven days.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have continued to indicate slight declines during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,380/mt ($495/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,400/mt ($498/mt), while the price of 20MnSi billet is at around RMB 3,480/mt ($510/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has improved slightly but still remains weak. Despite the approach of the National Day holiday, downstream demand has remained slack, causing traders to mostly hold a negative view of the market prospects and to be willing to offer lower prices in order to close more deals. Supply and market inventory have declined slightly but they still provide weak support for steel section prices. As for the week ahead, considering that trading activity may increase but not as much as previously expected, it is believed that steel section prices in China may move sideways but with some downticks also possible. 

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

$1 = RMB 6.825