Chinese domestic steel section market still declines

Chinese domestic steel section prices have declined significantly during the past week, boosting negative sentiment among traders, who are increasingly unwilling to conclude purchases.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $569/mt. The same product is sold at $522/mt in the Tangshan market and at $578/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $557/mt in the Shanghai market, at $520/mt in Tangshan and at $617/mt in the Guangzhou market. In Shanghai, Tangshan and Guangzhou markets, 250 mm x 118 mm x 10 m I-beam prices stand respectively at $604/mt, $556/mt and $604/mt. The prices are all ex-mill, including 17 percent VAT.
 
As for billet, prices in the Chinese market have indicated a sharp fall during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,930/mt ($473/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,960/mt ($478mt), while the price of 20MnSi billet is at around RMB 3,050/mt ($493mt). The prices are all ex-mill, including 17 percent VAT.
 
Mills do not intend to reduce their steel section production volumes and this will increase supply pressure on the domestic market. The sharp fall in billet prices has been the main reason for the drop in local steel section prices in the past week, while mills' reductions in their quotations have also meant that there is less support for market prices. For the coming week, China's domestic steel section market is expected to continue to decrease, though at a slower rate.