Domestic steel section prices in China have maintained their soft trend during the past week, while mills have continued to reduce their prices.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $591/mt. The same product is sold at $546/mt in the Tangshan market and at $598/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $582/mt in the Shanghai market, at $548/mt in Tangshan and at $635/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 $622/mt, $588/mt and $624/mt. The prices are all ex-mill, including 17 percent VAT.
As for billet, prices in the local Chinese market have been moving on a downward trend. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,090/mt ($498/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,120/mt ($503mt), while the price of 20MnSi billet is around RMB 3,210/mt ($518/mt). The prices are all ex-mill, including 17 percent VAT.
It is difficult for billet prices in China to register a recovery at present. Meanwhile, sentiment among traders in the Chinese domestic steel section market remains negative given the low overall trading volume. It is believed that the current price downtrend and weak trading volume in the market will continue next week also, though the decrease margin is expected to be smaller.