Chinese domestic steel section market moves on sharp downtrend

The Chinese domestic steel section market has moved on a sharp downtrend during the past two weeks.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $443/mt. The same product is sold at $367/mt in the Tangshan market and at $429/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $427/mt in the Shanghai market, at $372/mt in Tangshan and at $457/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 $427/mt, $389/mt and $435/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 risen sharply over the past two weeks. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,120/mt ($325/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,150/mt ($330/mt), while the price of 20MnSi billet is at around RMB 2,240/mt ($344/mt). The prices are all ex-mill, including 17 percent VAT.
 
Overall trading activity in the local Chinese steel section market has decreased significantly and is currently at very low levels. The strong drop in billet prices is the main reason for the declines in domestic steel section prices. As for the coming week, it is believed that the steel section market will continue to move on a downward trend.

$1 = RMB 6.52