Chinese domestic steel section market supported by higher billet prices

Chinese domestic steel section market has indicated a strong upward trend during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $493/mt (RMB 3,410/mt). The same product is sold at $491/mt (RMB 3,390/mt) in the Tangshan market and at $515/mt (RMB 3,560/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $496/mt (RMB 3,430/mt) in the Shanghai market, at $495/mt (RMB 3,420/mt) in Tangshan and at $521/mt (RMB 3,600/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 $512/mt (RMB 3,540/mt), $507/mt (RMB 3,500/mt) and $586/mt (RMB 4,050/mt). The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese domestic market have moved on a rising trend in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,110/mt ($450/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,140/mt ($454/mt), while the price of 20MnSi billet is at around RMB 3,250/mt ($470/mt). The prices are all ex-mill, including 17 percent VAT.
 
The local Chinese steel section market has moved up during the past week mainly due to support from higher billet prices, though overall trading activity in the market has been at very low levels. Meanwhile, some steel section producers have chosen to carry out maintenance works during this current high-cost period, causing supply volumes to remain at low levels, which also provide support for steel section prices. As for the coming week, it is believed that domestic steel section prices will continue their upward trend, though increase margins are expected to be smaller.

$1 = RMB 6.91