With the decline of the local rebar and hot rolled coil markets, China's domestic prices of all angles, channels and I-beam decreased to some extent during the past week. However, influenced by the rising prices of billet, prices in the domestic section steel market began climb up once again towards the end of the week.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Angle | 50 mm x 50 mm x 5 m | Q235 | 4,284 | -14 | 628 | -2 |
Channel | 160 mm x 65 mm x 8.5 m | Q235 | 4,450 | +250 | 652 | -3 |
I-Beam | 250 mm x 118 mm x 10 m | Q235 | 4,498 | +22 | 660 | +3 |
Currently, the prices of 5# angle steel in Shanghai, Tangshan and Guangzhou are standing at RMB 4,450/mt ($652/mt), RMB 4,380/mt ($642/mt) and RMB 4,380/mt ($642/mt) respectively. The prices of 25# channel steel in the respective regions mentioned above are at RMB 4,500/mt ($660/mt), RMB 4,360/mt ($639/mt and RMB 4,580/mt ($672/mt). As for I-beam, the respective prices are at levels of RMB 4,580/mt ($672/mt), RMB 4,600/mt ($674/mt) and RMB 4,480/mt ($657/mt). All these prices include tax.
Prices of billet are still at high levels, though there is some confusion as regards ex-factory billet prices, which have been influenced by the prices of rebar and hot rolled coil. Last Friday, the prices of billet dropped down to some extent, but subsequently climbed up at the weekend, while a significant increase was seen in the trading volume. At present, the mainstream price of 150 mm x 150 mm common carbon billet from domestic mills is RMB 4,180/mt ($613/mt), 165 mm x 165 mm common carbon billet is at RMB 4,210/mt ($617/mt), while low alloy billet stands at around RMB 4,300/mt ($630/mt). Because of the high billet prices, steel mills are more cautious in their purchases of this semi-finished product.
In the past week, arrivals in China's domestic section market have declined somewhat. Some specifications are scarce and some are even out of stock. Meanwhile, market inventory is expected to increase in the coming week, as some section steels are currently in transit. As regards transactions, the volume in the first half of the week was rather positive, but thereafter the number deals in the market decreased.
Most traders think that the increasing trend will cease in the coming period, and that the market will enter a phase of consolidation. Domestic section steel producers are now more cautious about purchasing billets due to the high prices. Meanwhile, the declines in the steel futures exchange as well as in the local markets for products such as rebar and hot rolled coils are also expected to exert an impact on China's domestic section steel market.