During the week ending September 21, section steel prices in most regions of China have been decreasing under the influence of the new pricing announcements made by domestic producers. As of September 21, the average sales prices in the main regions 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 | 4,320 | -60 | 646 | -9 |
Channel | 160 mm x 65 mm x 8.5 m | Q235 | 4,330 | -72 | 647 | -11 |
I-beam | 250 mm x 118 mm x 10 m | Q235 | 4,422 | -26 | 661 | -4 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,380/mt ($655/mt). The same product is sold at RMB 4,180/mt ($625/mt) in the Tangshan market and at RMB 4,550/mt ($680/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,380/mt ($655/mt) in the Shanghai market, at RMB 4,200/mt ($628/mt) in Tangshan and at RMB 4,550/mt ($680/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 4,360/mt ($652/mt), RMB 4,450/mt ($665/mt) and RMB 4,600/mt ($688/mt). The prices are all ex-mill, including 17 percent VAT.
As the holiday season approaches, cautious buyers have adopted a waiting policy and are avoiding large purchases. Meanwhile, traders have also chosen to be more prudent. However, those traders facing problems in their cash flows are reportedly giving discounts on some orders.
During the week in question, in the Tangshan market the price of common carbon billets of 150 mm x 150 mm size has declined to RMB 3,880/mt ($580/mt), while the price of low alloy billet has fallen to RMB 4,000/mt ($598/mt). Both prices include 17 percent VAT. Billet prices in the Tangshan market have declined by RMB 30/mt ($4.5/mt); however, market activities have not shown any revival. The overall market is characterized by pessimism.