Local Chinese semi-finished steel prices move up

During the week ending July 31, 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, production cuts due to environmental protection measures have continued to be observed in northern China, reducing semi-finished steel supply and thereby providing support for semi-finished steel prices. However, consumption of semi-finished steel has also decreased, though downstream users still concluded purchases due to low inventory levels. It is thought that semi-finished steel prices in the Chinese domestic market will likely follow a rising trend in the coming week, though increase margins are expected to be on the small side.

All prices are ex-warehouse and on actual weight basis and include 16 percent VAT.
 
$1 = RMB 6.83