Local Chinese semi-finished steel prices increase

During the week ending June 12, Chinese domestic semi-finished steel prices have increased due to tight supply and low inventory in the spot market, 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, semi-finished steel supply has been tighter in the spot market in China, exerting a positive impact on traders’ sentiment and boosting semi-finished steel prices. Meanwhile, inventories in the semi-finished steel market have declined, also positively affecting semi-finished steel prices. However, following the recent increases, semi-finished steel prices may face downward pressure in the coming period. It is expected that semi-finished steel prices in the Chinese domestic market will move sideways in the week ahead.

All prices are ex-warehouse and on actual weight basis and include 16 percent VAT.

 
$1 = RMB 6.40