Chinese domestic steel section prices move upwards

Chinese domestic steel section prices have moved upwards during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have increased during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,510/mt ($501/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,530/mt ($504/mt), while the price of 20MnSi billet is at around RMB 3,610/mt ($515/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the local Chinese steel section market prices have still not increased much in the past week, remaining at low levels. However, increases in upstream billet prices and in prices of other steel products have provided support for steel section prices. Nevertheless, the weakness of demand and the recovery of supply volumes due to relaxation of environmental measures have caused most traders to focus on sales and offer certain discounts. As for the week ahead, it is believed that domestic steel section prices may move in an upward direction against the backdrop of the recent recovery of the steel market.

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

$1 = RMB 7.004