The Chinese domestic steel section market witnessed a slight uptrend last week, but demand was not as good as anticipated.
At the end of last week, in the Shanghai market the price of 50 mm x 50 mm x 5 m steel angles was at $684/mt. The same product was sold at $658/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 stood at $685/mt in the Shanghai market, at $669/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 stood respectively at $687/mt, $668/mt and $707/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 were on a slight downward trend Last week. At the end of the week, in Tangshan the price of Q235 150 x 150 mm square billet was at RMB 3,790/mt ($602/mt), the price of 165 x 225 mm rectangular billet stood at RMB 3,820/mt ($608/mt), while the price of 20MnSi billet was around RMB 3,910/mt ($624/mt). The prices are all ex-mill, including 17 percent VAT.
Coming to the end of March, traders of steel sections in China mostly maintained a cautious approach towards business activity. With steel mills raising their quoted prices slightly, traders have had little choice but to raise their prices as well. However, traders are still unsure about the likely future trend of the market. Considering pressure on funds towards the end of month, demand on the downstream side shrank a little. The overall steel section market in China market appears to be on a slight upward trend. Market observers state that, as purchasing costs for traders are relatively high and as inventory levels have declined a little, domestic steel section prices may be expected to rise gradually in the short term. However, demand is not as good as had been expected, and so market confidence is not very strong. It is thought that the steel section market in China may be characterized by some fluctuations in the coming seven days, before going on to indicate further upward movement.