Chinese domestic steel section prices mostly stable with some slight upticks

Chinese domestic steel section prices have mostly moved sideways in the past week, though with slight upticks also seen.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have indicated small decreases in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,400/mt ($481/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,420/mt ($484/mt), while the price of 20MnSi billet is at around RMB 3,500/mt ($495/mt). The prices are all ex-mill, including 13 percent VAT.

All prices include 13 percent VAT and all prices are ex-warehouse.

Overall trading activity in the Chinese domestic steel section market has improved a little but still remains at low levels. While upstream billet prices have softened slightly, most raw material futures prices have indicated a strong performance. Traders believe that, before restrictions of production volumes begin at the end of this month, supply volumes may remain at high levels and so most traders have chosen to keep their prices stable in order to close more deals. Downstream demand has improved slightly though it continued to be weak due to the influence of the mid-Autumn festival. As for the week ahead, considering that restrictions of production volumes may start and that supply volumes may decrease, it is believed that domestic steel section prices may fluctuate in a slightly upward direction.

$1 = RMB 7.07