Chinese domestic steel section prices soften slightly

Chinese domestic steel section prices have moved down 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 reduce trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,450/mt ($481/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,470/mt ($483/mt), while the price of 20MnSi billet is at around RMB 3,550/mt ($494/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese domestic steel section market has been sluggish since most downstream buyers have been holiday, while prices have indicated a minor decrease due to the slight softening seen in billet prices. Production is at normal levels, causing market inventory to increase and so most traders have been willing to reduce their quoted prices. As for the week ahead, as traders may seek to reduce their stock levels, it is believed that steel section prices may indicate a further slight softening.

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

$1 = RMB 7.179 (October 9)