Chinese domestic steel section prices decrease

Chinese domestic steel section prices have followed a soft trend during the past seven days.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have indicated relatively large decreases during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,250/mt ($458/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,270/mt ($461/mt), while the price of 20MnSi billet is at around RMB 3,350/mt ($472/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has improved a little during the past week but is still on the weak side, while prices have declined against the backdrop of the decreases seen in prices of billet and other raw materials. Also, at the end of the month, most traders were willing to reduce their quoted prices in order to close more deals. As for the week ahead, considering the high supply and low demand and also the weakening of support from the cost side, it is believed that steel section prices may continue their soft trend, though the decrease margins may be smaller.

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

$1 = RMB 7.094