The steel section market in China has fluctuated in a downward direction in the past week, while trading activity has remained slack.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $688/mt. The same product is sold at $638/mt in the Tangshan market and at $715/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $688/mt in the Shanghai market, at $663/mt in Tangshan and at $723/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 $693/mt, $655/mt and $700/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.
As for billet, prices in the Chinese market have fluctuated downward during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,720/mt ($591/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,750/mt ($593/mt), while the price of 20MnSi billet is around RMB 3,840/mt ($613/mt). The prices are all ex-mill, including 17 percent VAT.
Overall, weakness of demand is the main obstacle facing China's steel section market. In this context, mills have decreased their quoted prices, while traders have reduced their orders from mills in order to minimize the risks from inventory. In the Tangshan market, there has been a relatively large decrease in section prices, with local billet prices also falling. The domestic steel section market is still waiting for downstream demand to pick up, while the start of projects for the construction of affordable public housing and railways are expected to have a positive impact on the market. Low inventory levels are also expected to provide support for prices. It is thought that China's steel section market may follow a stable trend in the short term.