Chinese domestic steel section prices move up strongly

Chinese domestic steel section prices have followed a strong upward trend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have indicated a sharply upward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,120/mt ($629/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,140/mt ($632/mt), while the price of 20MnSi billet is at around RMB 4,220/mt ($644/mt). The prices are all ex-mill, including 13 percent VAT.

Local Chinese steel section prices have followed a strong upward trend during the past week amid sharp increases in prices of billet and other raw material. Overall trading activity has decreased as prices are considered to have increased too rapidly. Most downstream buyers are maintaining a wait-and-see stance. Traders prefer to hold on to their stocks and wait for higher prices. Steel section producers have mostly increased their quoted prices on the back of strong rises in their costs. As for the week ahead, against a backdrop of high costs and weakening demand, it is believed that domestic steel section prices may fluctuate at high levels.

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

$1 = RMB 6.551