During the past week, the Chinese section steel market has been characterized by different price trends in the various regions. In the eastern region section steel prices have trended up slightly, in the southern region prices have been stable, while in the northern region some decreases have been seen in the local section steel market. As of September 14, the average section steel prices in the main Chinese 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 | 4,380 | -64 | 651 | -9 |
Channel | 160 mm x 65 mm x 8.5 m | Q235 | 4,402 | -26 | 654 | -4 |
I-Beam | 250 mm x 118 mm x 10 m | Q235 | 4,448 | -42 | 661 | -6 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,430/mt ($658/mt). The same product is sold at RMB 4,300/mt ($639/mt) in the Tangshan market and at RMB 4,600/mt ($684/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,430/mt ($658/mt) in the Shanghai market, at RMB 4,320/mt ($642/mt) in Tangshan and at RMB 4,600/mt ($684/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 4,400/mt ($654/mt), RMB 4,530/mt ($673/mt) and RMB 4,600/mt ($684/mt). The prices are all ex-mill, including 17 percent VAT.
In the eastern region, prices have continued to move up despite weak demand. However, following local mills' aggressive adjustments of their price policies in the previous few weeks, transaction prices in the market are now lower than mills' published prices. As many buyers built up their stocks when prices were rising strongly, few big deals are now seen in the market.
In the northern region, prices of semi-finished products have slid down in the week in question, with rolled steel product prices following suit. During the week in question, in the Tangshan market the price of common carbon billets of 150 mm x 150 mm size has risen to RMB 3,990/mt ($593/mt), while the price of low alloy billet has climbed up to RMB 4,110/mt ($611/mt). Both prices include 17 percent VAT.
In the southern market, the section market has been following a stable trend during the past week. However, affected by the rainy weather, sales activity has weakened.
On the whole, the Chinese section steel market is now seeing some corrections due to lack of support from the demand side. It is expected that demand will be further affected in a negative manner during China's approaching mid-autumn festival holiday (September 22-24) and during the seven-day long National Day holiday at the start of October.