Downward pressures in local Chinese steel section market

The Chinese domestic steel section market has indicated an overall downtrend in the past seven days. Steelmakers have been reducing their ex-works prices, exerting a negative impact on market sentiment.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $339/mt. The same product is sold at $279/mt in the Tangshan market and at $375/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $331/mt in the Shanghai market, at $276/mt in Tangshan and at $367/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 $343/mt, $293/mt and $391/mt. The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese domestic market have softened during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,560/mt ($245/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,590/mt ($250/mt), while the price of 20MnSi billet is at around RMB 1,680/mt ($264/mt). The prices are all ex-mill, including 17 percent VAT.

Overall trading activity in the Chinese domestic steel section market has remained slack in the past week, with the soft trend of billet prices also weakening support for steel section prices. As for the coming week, it is thought that the domestic steel section market will likely continue their downward trend.

The prices are on theoretical weight basis, all prices include 17 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.37