Local Chinese steel section market impacted by declines in futures and billet prices

Chinese domestic steel section prices have followed a downward trend over the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $419/mt (RMB 2,890/mt). The same product is sold at $385/mt (RMB 2,650/mt) in the Tangshan market and at $435/mt (RMB 3,000/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $415/mt (RMB 2,860/mt) in the Shanghai market, at $383/mt (RMB 2,640/mt) in Tangshan and at $447/mt (RMB 3,080/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 $434/mt (RMB 2,990/mt), $402/mt (RMB 2,770/mt) and $508/mt (RMB 3,500/mt). The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.
 
As for billet, prices in the Chinese domestic market have declined during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,420/mt ($351/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,450/mt ($356/mt), while the price of 20MnSi billet is at around RMB 2,550/mt ($370/mt). The prices are all ex-mill, including 17 percent VAT.
 
Overall trading activity in the local Chinese steel section market has been slack during the past week, while decreases in the futures market and in billet prices have been the main factor contributing to the downward movement of domestic steel section prices. However, much of current market inventory consists of products bought in at relatively high prices, which will provide some support for market prices. As for the coming week, it is believed that the domestic steel section market will indicate further downward movement. 

$1 = RMB 6.89