Local Chinese semi-finished steel prices mostly indicate further increase

As of May 8, Chinese domestic billet prices have increased week on week, though slab prices in Tangshan have decreased, 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 China first moved upwards but decreased later in the week, though average prices of billet in particular are still higher compared to prices seen before the Labor Day Holiday. Following previous price rises, downstream users are now more cautious about concluding purchases. Semi-finished steel supply has increased slightly during the given week. At the same time, inventory levels of semi-finished steel have decreased in the spot market, though inventories held by steelmakers have not declined significantly. It is thought that semi-finished steel prices in the Chinese domestic market will likely move down in the coming week.

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