Local Chinese steel section prices fluctuate, mostly softening slightly

Chinese domestic steel section prices have indicated small fluctuations during the past week, mostly softening slightly.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have showed a slight upward trend during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,590/mt ($505/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,610/mt ($508/mt), while the price of 20MnSi billet is at around RMB 3,690/mt ($519/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has remained sluggish during the past week due to the cold weather and the off-season. Supply has declined a little, but is still at a high level, and so market inventory has increased. Demand is still weak but some buyers may increase their stock levels in the near future ahead of the Chinese New Year holiday. As for the week ahead, it is believed that steel section prices may continue to fluctuate, with slight reductions, amid weak demand and ongoing support from the cost side.

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

$1 = RMB 7.111