Chinese domestic steel section market boosted by rising futures prices

Chinese domestic steel section prices have continued their rising movement during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $431/mt (RMB 2,950/mt). The same product is sold at $402/mt (RMB 2,750/mt) in the Tangshan market and at $453/mt (RMB 3,100/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $430/mt (RMB 2,940/mt) in the Shanghai market, at $405/mt (RMB 2,770/mt) in Tangshan and at $472/mt (RMB 3,230/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 $447/mt (RMB 3,060/mt), $418/mt (RMB 2,860/mt) and $516/mt (RMB 3,530/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, prices in the Chinese domestic market have increased further in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,520/mt ($368/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,550/mt ($373/mt), while the price of 20MnSi billet is at around RMB 2,660/mt ($384/mt). The prices are all ex-mill, including 17 percent VAT.
 
The upward movement of the futures market has been a major contributing factor to the ongoing rising trend seen in the local Chinese steel section market, while domestic prices of other steel products have also been moving up. Supply volumes of steel sections are currently on the low side, while trading activity is still characterized by some slackness. As for the coming week, it is expected that the domestic steel section market will mostly continue to move on an upward trend.

$1 = RMB 6.77