Chinese domestic steel section prices see sharp declines

Chinese domestic steel section prices have showed a large margin of decrease during the past week.

As for billet, prices of the semi-finished steel products in the Chinese domestic market have maintained a downward trend during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 4,230/mt ($662/mt), the price of 165 x 225 mm rectangular billet stands at RMB 4,250/mt ($665/mt), while the price of 20MnSi billet is at around RMB 4,330/mt ($678/mt). The prices are all ex-mill, including 13 percent VAT. 

Chinese steel section prices have registered a large margin of decrease during the past week. Overall trading activity has been weak since prices keep reducing and demand has also been weak. Upstream billet prices and other raw material prices have decreased in spot and future market which mainly cause steel section prices to follow. Supply has slightly decreased but this hardly supports steel section prices. As for the week ahead, considering weak demand and ongoing decline in raw material prices, it is believed that steel section prices may continue to see a downtrend but decrease margin may be smaller.  

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

$1 = RMB 6.390