Chinese domestic steel section prices surge sharply

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

As for billet, prices of the semi-finished steel product in the Chinese domestic market have also rising sharply during the past week. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,260/mt ($465/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,280/mt ($468/mt), while the price of 20MnSi billet is at around RMB 3,360/mt ($480/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel market has increased slightly before the National Day holiday, while prices have moved up sharply in line with strong increases in billet prices against the backdrop of China’s easing of its monetary policy and its stimulus measures for the domestic real estate sector, though at the same time demand and supply have not changed much. As for the week ahead, it is believed that steel section prices may continue their upward trend but the increase margins may be smaller.

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

$1 = RMB 7.007