Low demand and reduced supply in Chinese domestic semi-finished steel market

During the week ending August 2, Chinese domestic semi-finished steel prices have indicated an upward trend, while transaction activity in the overall market has been at low levels. Average prices of steel billet and slab in the local Chinese market are presented in the table below.

The special environmental protection examinations for key domestic steel enterprises in China has resulted in some reduction in production and sales activity for semi-finished steel. Most semi-finished steel suppliers have raised their sales prices. In spite of the decrease in supply, buyers in the domestic semi-finished steel market have not shown any great eagerness to buy semi-finished steel, resulting in slack transaction activity in the market. It is thought that semi-finished steel prices in the Chinese domestic market will likely continue their rising trend in the coming week due to reduced supply against the backdrop of the environmental protection examinations.

The above prices include 17 percent VAT
 
$1 = RMB 6.64