Local Chinese semi-finished steel prices indicate minor fluctuations

During the week ending April 2, Chinese domestic semi-finished steel prices have fluctuated within a limited range, 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, winter production restriction measures came to an end on March 31, though further measures will be implemented in Tangshan until September. In these circumstances, both demand for and supply of semi-finished steel have increased to some extent. Currently, inventories of semi-finished steel are at relatively high levels, while demand is expected to be better in the traditional peak season of April and May, especially as value-added tax has been reduced to 13 percent for the manufacturing industry and the mining sector as of April 1. At the same time, the VAT rate reduction will also weaken support for semi-finished steel prices. It is expected that domestic semi-finished steel prices will continue their fluctuating trend in the coming week.

All prices are ex-warehouse and on actual weight basis and include 13 percent VAT.

$1 = RMB 6.71