Local Chinese semi-finished steel prices mostly edge upwards

During the week ending February 6, Chinese domestic semi-finished steel prices have mostly moved upwards, 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 prices in central and northern China have indicated an upward trend, though semi-finished steel prices in southern China have seen slight declines. In the latter part of the given week, rebar and HRC futures prices at Shanghai Futures Exchange (SHFE) edged upwards, exerting a positive impact on domestic semi-finished steel prices. Meanwhile, downstream rolling mills have been building up inventories, also bolstering semi-finished steel prices. As the Chinese New Year holiday (February 15-21) is approaching, demand will be slacker. It is thought that semi-finished steel prices in the Chinese domestic market will likely move sideways in the coming week. 

All prices are ex-warehouse and on actual weight basis and include 17 percent VAT.
 
$1 = RMB 6.28