Chinese domestic steel section prices still fluctuate by small margins

Chinese domestic steel section prices have continued to fluctuate slightly during the past week.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed a slightly upward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,100/mt ($431/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,120/mt ($434/mt), while the price of 20MnSi billet is at around RMB 3,200/mt ($445/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section has been slow in the past week, while prices have received support from the minor increases seen in prices of billet and other raw materials. But certain traders still reduced their quoted prices slightly in order to close more deals as the end of the year approaches. As for the week ahead, considering the support from the cost side and the weakness of demand, it is believed that steel section prices will continue to fluctuate slightly, with some small downticks also possible due to the end of the year.

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

$1 = RMB 7.188