Local Chinese billet prices increase, slab prices move sideways

During the week ending May 28, Chinese domestic billet prices have increased, with domestic slab prices moving sideways, while transaction activity in the market has been at medium levels. Average prices of steel billet and slab in the local Chinese market are presented in the following table.

During the given week, demand for semi-finished steel has been good in China, though towards the end of the week domestic finished steel producers became less willing to purchase semi-finished steel at the increased price levels, resulting in a slight softening of prices and weaker sentiment. Meanwhile, as the traditional offseason is approaching, demand for semi-finished steel is expected to slacken. However, inventories of semi-finished steel are at relatively low levels, which will provide some support for prices. It is expected that semi-finished steel prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

All prices are ex-warehouse and on actual weight basis and include 13 percent VAT.

$1 = RMB 6.91