Sluggish activity in Chinese domestic semi-finished steel market

During the week ending June 14, Chinese domestic semi-finished steel prices have mostly moved on an upward trend, though remaining stable in the provinces of Jiangsu and Fujian, 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, due to the rebound seen in finished steel prices, steelmakers increased their offer prices for semi-finished steel. However, rolling mills lack confidence in the future prospects for finished steel prices and so they have been unwilling to conclude purchases of semi-finished steel, resulting in slack activity in the market. Since the finished steel market is entering the traditional offseason for demand, it is thought that semi-finished steel prices in the Chinese domestic market will likely move sideways in the coming week.

The above prices include 17 percent VAT
 
$1 = RMB 6.59