Chinese steel section market still waits for demand to pick up

Wednesday, 08 February 2012 16:08:42 (GMT+3)   |  
In the past week, the steel section market in China has mostly been stable, while slight declines have been seen in certain cities. In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles stands at $683/mt. The same product is sold at $638/mt in the Tangshan market and at $714/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $683/mt in the Shanghai market, at $649/mt in Tangshan and at $730/mt in the Guangzhou market. In Shanghai, Tangshan and Guangzhou markets, 250 mm x 118 mm x 10 m I-beam prices stand respectively at $690/mt, $663/mt and $714/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in China can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese market remained stable during the first week after the Spring Festival. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,700/mt ($587/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,730/mt ($591/mt), while the price of 20MnSi billet is around RMB 3,820/mt ($606/mt). The prices are all ex-mill, including 17 percent VAT.

After the Spring Festival holiday, some mills' quoted prices have risen. However, considering most downstream mills have not returned to work yet, the trading volume has not been so good and there has been a lack of support for higher prices. However, it is thought that domestic steel section prices will likely increase if demand improves. In the meantime, the market is expected to see just slight fluctuations in price.


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