Chinese domestic steel section prices soften slightly or move sideways

Some Chinese domestic steel section prices have softened slightly in the past week, while others have moved sideways.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have moved down slightly during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,530/mt ($502/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,550/mt ($505/mt), while the price of 20MnSi billet is at around RMB 3,630/mt ($516/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the local Chinese steel section market has been at low levels in the past seven days, with the minor decreases in upstream billet prices contributing to the slightly soft trend of some steel section prices. Some traders were willing to offer certain discounts in order to close more deals before the end of November. Inventories in southern China have continued to rise. However, considering that most producers in China have plans for maintenance works in December, supply volumes may decrease. As for the week ahead, it is believed that domestic section steel prices may move down by a small margin given the current offseason.

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

$1 = RMB 7.03