Chinese domestic steel section prices rise slightly

Chinese domestic steel section prices have increased slightly during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed a fluctuation with slightly upward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,650/mt ($512/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,670/mt ($515/mt), while the price of 20MnSi billet is at around RMB 3,750/mt ($526/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has been weak, with certain parts of the country impacted by the typhoons. Macroeconomic policy measures have positively influenced the raw material market, causing billet prices as well as rebar futures prices to follow an upward trend. But with demand mostly remaining weak and with trading activity slackening again after traders initially raised their prices, most traders then decided to reduce their prices almost to the same levels seen last week, though prices remained slightly higher on week-on-week basis. As for the week ahead, considering the weakness of the demand side, it is believed that steel section prices may move down by a small margin.

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

$1 = RMB 7.131