Chinese steel section prices see some slight increases

With the continuous slumps registered in the previous two weeks, section prices in the Chinese domestic market had posted a total decrease of RMB 200/mt ($29/mt). However, during the week ending July 13, prices in some regions moved up slightly due to fluctuations in semi-finished steel prices. As of July 13, average steel section prices in the main Chinese cities are as follows:

In the Shanghai market, the price of 50 mm x 50 mm x 5 m angle is now at RMB 3,852/mt ($569/mt). The same product is sold at RMB 3,800/mt ($561/mt) in the Tangshan market, while it is sold at RMB 3,950/mt ($583/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m channel stand at RMB 3,930/mt ($581/mt) in the Shanghai market, at RMB 3,800/mt ($561/mt) in Tangshan and at RMB 4,100/mt ($606/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 3,960/mt ($585/mt), RMB 4,040/mt ($597/mt) and RMB 4,000/mt ($591/mt). The prices are all ex-mill, including 17 percent VAT.

Given the softening trend of steel section prices in China, most customers have slowed down their purchase activities and followed a waiting policy. Meanwhile, many producers have decreased their outputs and so new arrivals have also shrunk. In China's southern region, supplies of channels have declined due to the production policies adopted by large mills such as Guangxi Province-based Liuzhou Steel. It is expected that prices will rebound if mills continue to cut back on production.

In the semi-finished steel market, prices have indicated great fluctuations in recent days. In the Tangshan market, common carbon billets of 150 mm x 150 mm size are priced at RMB 3,480-3,500/mt ($510-513/mt), while prices of low alloy billets are at RMB 3,620/mt ($531/mt). Both prices include 17 percent VAT. The increases in semi-finished steel prices have been as high as RMB 80/mt ($12/mt).

US$1=RMB 6.77