Reduced pressure from supply side in Chinese domestic semi-finished steel market

Tuesday, 08 December 2015 10:48:34 (GMT+3)   |   Shanghai
During the week ending December 8, domestic prices of billet in China have mostly indicated a stable trend, though with declines seen in billet prices in Fujian Province and with declines also being observed in slab prices, 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 following table.

During the given week, greater stability has been seen in semi-finished steel prices in China after the declines previously recorded, while overall demand has continued to be slack. Steelmakers have continued to cut their production activities, easing the pressure from the supply side in the semi-finished steel market and thereby contributing to the stability of prices. However, average iron ore prices in the international market have dropped below $40/mt, exerting a negative impact on the semi-finished steel market. It is believed that semi-finished steel prices in the Chinese domestic market will likely decrease in the coming week, though with just slight downticks anticipated. 
 
Product Name Spec. Category City Price (RMB/mt) Price ($/mt) Weekly Change (RMB/mt)
Billet 12 mm x 12 mm Q195-Q235 Tangshan 1,500 234 0
Jinzhong 1,50 234 0
Fuzhou 1,530 238 ↓30
Jiangyin 1,600 249 0
Average price 1,533 239 ↓5
Billet 12 mm x 12 mm 20 MnSi Tangshan 1,600 249 0
Jinzhong 1,600 249 0
Fuzhou 1,62 252 ↓30
Jiangyin 1,700 265 0
Average price 1,630 254 ↓8
Slab 250*1800*6000 Q235 Tangshan,Hebei 1,520 237 ↓30
 
The above prices include 17 percent VAT 

$1 = RMB 6.42 
 
 


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