In the past week, the Chinese steel section market has continued to fluctuate in a downward trend, while the trading volume has not improved.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $652/mt. The same product is sold at $612/mt in the Tangshan market and at $665/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $652/mt in the Shanghai market, at $623/mt in Tangshan and at $677/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 $652/mt, $633/mt and $665/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in the Chinese market can be viewed in the SteelOrbis price reports section.
As for billet, prices in the Chinese market have indicated a slight downward trend during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,570/mt ($565/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,600/mt ($570/mt), while the price of 20MnSi billet is around RMB 3,690/mt ($584/mt). The prices are all ex-mill, including 17 percent VAT.
High temperatures and rainy weather have had a negative impact on construction work in China, thereby impacting demand in the domestic steel section market. Inventory levels in the market are still at low levels. Traders are flexible in their quotations, and this has also contributed to the wait-and-see stance among downstream buyers. At the end of June, funding was also an issue in the market, causing traders to lower prices in efforts to sell off materials. With July being part of the low season for demand, the steel section market in China is likely to witness further downward fluctuations in the week ahead.