Local Chinese semi-finished steel prices mostly increase

During the week ending May 22, Chinese domestic semi-finished steel prices have mostly increased, though billet prices in Jiangyin and Fuzhou have moved sideways following rises in the previous week. Transaction activity in the domestic semi-finished steel market has been at medium levels in the past week. 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 supply has increased slightly, though inventory levels of semi-finished steel producers have decreased, while downstream users have mostly been purchasing in line with their needs amid the slight decreases seen in finished steel prices. The lower profit margins for finished steel will negatively affect demand for semi-finished steel, resulting in downward pressure on semi-finished steel prices. It is thought that semi-finished steel prices in the Chinese domestic market will likely edge down in the coming week.

All prices are ex-warehouse and on actual weight basis and include 16 percent VAT.
 
$1 = RMB 6.37