Chinese domestic steel section prices rise slightly

Chinese domestic steel section prices are slightly higher week on week, have first risen and then declined in the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have  moved up by a small margin amid fluctuations. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,470/mt ($496/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,490/mt ($498/mt), while the price of 20MnSi billet is at around RMB 3,570/mt ($510/mt). The prices are all ex-mill, including 13 percent VAT.

Following previous rises, in recent days, since demand has kept declining due to the hot weather and flooding in certain areas, traders have become more willing to reduce their steel section quotations in order to close more deals. Supply volumes have lately fallen slightly, which gives some support for steel section prices. As for the week ahead, as the end of the month approaches, most traders may be under pressure to conclude sales and bring in cash. Accordingly, it is believed that domestic steel section prices may move down slightly.

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

$1 = RMB 7.003