Chinese section market uptrend starts to show signs of slowdown

Tuesday, 06 April 2010 10:55:58 (GMT+3)   |  
       

The overall Chinese large and medium size section market has continued to climb up in the past week (March 31- April 6), though declines have been seen in some regions, especially in the north. As of April 6, average section prices in China's main cities are as follows:

Product Name

Specification

Category

Average Price (RMB/mt)

Weekly change (RMB/mt)

Price

($/mt)

Weekly change ($/mt)

Angle

50 mm x 50 mm x 5 m

Q235

4,108

+26

602

+4

Channel

160 mm x 65 mm x 8.5 m

Q235

4,218

+40

618

+6

I Beam

250 mm x 118 mm x 10 m

Q235

4,308

+54

632

+8

In the Shanghai market, the price of 50 mm x 50 mm x 5 m angle is at RMB 4,280/mt ($628/mt). The same product is sold at RMB 4,240/mt ($622/mt) in the Tangshan market and at RMB 4,130/mt ($606/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m channel stand at RMB 4,280/mt ($628/mt) in the Shanghai market, at RMB 4,270/mt ($626/mt) in Tangshan and at RMB 4,250/mt ($623/mt) in the Guangzhou market. In the Shanghai and Guangzhou markets, I-beam prices stand respectively at RMB 4,350/mt ($638/mt) and RMB 4,250/mt ($623/mt). The prices are all ex-mill, including 17 percent VAT.

Declines have mainly been seen in the northern Chinese market in the past week, while a continuous uptrend has been registered in the eastern and southern markets. According to the new price announcement made on April 1 by Anhui Province-based Maanshan Steel Group, the ex-mill prices of the company's angle and channel products were hiked by RMB 150/mt ($22/mt), effective for the first ten days of April. Thus, the ex-mill prices of its angles and channels are now standing at RMB 4,170-4,300/mt ($611-640/mt) and RMB 4,250-4,350/mt ($623-639/mt) respectively. On March 31, Shandong Province-based Rizhao Steel Group also raised its I-beam and channel prices, but with little impact on the market. As stated by some market players, it is important to sell off some inventories at the current juncture, instead of waiting for the market trend to rise further.

In Tangshan city, semi-finished prices have shown some fluctuations recently, with resulting fluctuations in I-beam, angle and channel prices during the past week. Currently, common carbon billets of 150 mm x 150 mm size are priced at RMB 3,900/mt ($572/mt), the prices of common carbon billets of 165 mm x 165 mm size are at RMB 3,930/mt ($576/mt) and low alloy billet prices are at RMB 4,020/mt ($589/mt).

As for the future market, most mills, traders and distributors are still positive on the prospects for the current uptrend, though some think that future price increases will not be that big.

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