Buyers exit Chinese domestic steel section market ahead of holiday

Chinese domestic steel section prices have fluctuated on a decreasing trend during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $488/mt (RMB 3,350/mt). The same product is sold at $456/mt (RMB 3,130/mt) in the Tangshan market and at $516/mt (RMB 3,540/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $484/mt (RMB 3,320/mt) in the Shanghai market, at $466/mt (RMB 3,200/mt) in Tangshan and at $517/mt (RMB 3,550/mt) in the Guangzhou market. In the Shanghai, Tangshan and Guangzhou markets, 250 mm x 118 mm x 10 m I-beam prices stand respectively at $491/mt (RMB 3,370/mt), $472/mt (RMB 3,240/mt) and $592/mt (RMB 4,060/mt). The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.
 
As for billet, the Chinese domestic market indicated a downward trend during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,810/mt ($410/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,840/mt ($414/mt), while the price of 20MnSi billet is at around RMB 2,930/mt ($427/mt). The prices are all ex-mill, including 17 percent VAT.
 
Due to the decreases seen in billet prices, the local Chinese steel section market has fluctuated on a soft trend during the past week. Although overall trading activity was almost down to zero levels, most steel section traders have chosen to reduce their steel section offer prices due to lower costs. However, some traders have decided to keep prices stable since buyers have mostly left the market already. As for the coming week, domestic steel section prices are expected to remain stable, though they may increase slightly after the holiday as trading activity picks up.

$1 = RMB 6.86