Chinese domestic steel section prices move down slightly

Chinese domestic steel section prices have softened slightly on week-on-week basis.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have moved down by a small margin during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,600/mt ($545/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,620/mt ($548/mt), while the price of 20MnSi billet is at around RMB 3,700/mt ($560/mt). The prices are all ex-mill, including 13 percent VAT.

In the past week, Chinese domestic steel section prices first increased but then started to decline, while they are now down slightly compared to one week ago. Overall trading activity has decreased due to the recent increases which had been seen in prices. Following the strong increases in both raw material prices and steel section prices in the previous week, most downstream buyers adopted a wait-and-see stance, leading traders to make certain reductions in their prices in order to close more deals. As for the week ahead, it is believed that domestic steel section prices may indicate small decreases amid the weakness of demand, though support still exists from the cost side.

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

$1 = RMB 6.605