Chinese domestic steel section prices continue slight downtrend

Chinese domestic steel section prices have continued their slight downtrend during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed a fluctuation with slightly reduce trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,410/mt ($480/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,430/mt ($483/mt), while the price of 20MnSi billet is at around RMB 3,510/mt ($495/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has increased slightly but is still on the weak side, while prices have softened due to the downward trend of prices of billet and other raw materials. Since demand is starting to recover and as production volumes are at a low level, the decreases in steel section prices have been smaller than the decreases in upstream prices. As for the week ahead, since market inventory has declined and as demand may continue to increase, it is believed that steel section prices may fluctuate by small margins.   

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

$1 = RMB 7.097