Chinese domestic steel section prices move up

Chinese domestic steel section prices have indicated an upward trend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed an upward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,490/mt ($486/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,510/mt ($489/mt), while the price of 20MnSi billet is at around RMB 3,590/mt ($500/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has increased slightly in the past week but is still considered to be weak, while prices have moved up supported by higher billet prices. On the other hand, steel section inventories remain on the high side, which still exerts pressure on steel section prices. The demand side is mostly maintaining a wait-and-see stance, but since some positive macroeconomic data hav been issued lately, certain traders have been seeking to increase their stock levels. As for the week ahead, while support from the cost side is still strong though the demand side may remain weak, it is believed that steel section prices may edge up by small margins.

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

$1 = RMB 7.178