Local Chinese steel section prices still fluctuate slightly, demand improves

Chinese domestic steel section prices have continued to follow a fluctuating trend during the past week, softening during the start of the week and increasing later.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have risen by small margins during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,520/mt ($495/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,540/mt ($498/mt), while the price of 20MnSi billet is at around RMB 3,620/mt ($510/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese domestic steel section market has improved and is considered to be at normal levels, while prices started to increase in the latter part of the past week supported by increases in billet prices. Outputs have increased and are at high levels since profit margins have been good lately. As for the week ahead, amid support from the cost side and from improved demand, it is believed that steel section prices will follow an upward trend.

The prices are all ex-mill, including 13 percent VAT.

$1 = RMB 7.104