Chinese domestic steel section prices rise strongly

Chinese domestic steel section prices have increased strongly during the past seven days.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed a strong upward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 4,300/mt ($666/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 4,320/mt ($669/mt), while the price of 20MnSi billet is at around RMB 4,400/mt ($682/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese steel section market has been slack in the past week since most downstream have not returned to work yet. Prices of billet and other raw materials prices have indicated significant increases both in spot and futures markets, causing steel section prices to follow suit. Market inventory has increased slightly due to the weakness of demand recently. As for the week ahead, considering that demand is expected to recover, it is believed that domestic steel section prices may follow an upward trend.

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

$1 = RMB 6.456