Chinese section market remains generally stable but with some fluctuations

Since our last analysis on June 9, the Chinese domestic section steel market has on the whole remained stable, though some decreases and increases have been seen in certain regions. Average section prices in the main Chinese cities are as follows:

In the Shanghai market, the price of 50 mm x 50 mm x 5 m angle is now at RMB 4,020/mt ($589/mt). The same product is sold at RMB 4,020/mt ($589/mt) in the Tangshan market, while it is sold at RMB 4,150/mt ($609/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m channel stand at RMB 4,050/mt ($594/mt) in the Shanghai market, at RMB 4,020/mt ($589/mt) in Tangshan and at RMB 4,310/mt ($632/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 RMB 4,130/mt ($606/mt), RMB 4,230/mt ($620/mt) and RMB 4,250/mt ($623/mt). The prices are all ex-mill, including 17 percent VAT.

On June 11, Shandong Province-based Laiyang Steel has reduced its sales prices for H-section and I-beam by RMB 220/mt ($32/mt) and RMB 200/mt ($29/mt) respectively. In the northern Chinese regions, some softening has been seen in local section prices, with decreases as high as RMB 50/mt ($7/mt).

In the eastern Chinese market, sales prices of sections are now lower than mills' offers. To avoid incurring losses, local traders have been trying to hold prices steady. With traders unwilling to make purchases, some specifications are in short supply in the market, leading to a slight increase in market prices.

In the Tangshan market, common carbon billets of 150 mm x 150 mm size are priced at RMB 3,710/mt ($544/mt), while prices of low alloyed billets are at RMB 3,830/mt ($562/mt). Both prices include 17 percent VAT.