Local Chinese semi-finished steel prices increase amid higher import iron ore prices

During the week ending February 12, Chinese domestic semi-finished steel prices have increased, while transaction activity in the market has been at low-to-medium levels. Average prices of steel billet and slab in the local Chinese market are presented in the following table.

During the given week, domestic semi-finished steel prices in China have indicated significant rises due to the increases observed in import iron ore prices during the Chinese New Year holiday. Meanwhile, rebar and HRC futures prices at Shanghai Futures Exchange have also increased compared to pre-holiday levels, exerting an additional positive impact on domestic semi-finished steel prices. However, demand for semi-finished steel has not improved significantly yet as most downstream steelmakers have not returned to work. It is expected that semi-finished steel prices in the Chinese domestic market will again move upwards in the coming week.

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

$1 = RMB 6.77