Local Chinese steel section market boosted by rising billet prices and low inventories

The Chinese domestic steel section market has moved on an upward trend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $373/mt. The same product is sold at $348/mt in the Tangshan market and at $418/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $363/mt in the Shanghai market, at $347/mt in Tangshan and at $405/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 $363/mt, $345/mt and $419/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 rebounded during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,880/mt ($303/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,910/mt ($308/mt), while the price of 20MnSi billet is at around RMB 2,000/mt ($322/mt). The prices are all ex-mill, including 17 percent VAT.
 
Overall trading activity in the local Chinese steel section market has remained slack during the past seven days. Low inventory levels and rising billet prices have caused traders to push up their sales prices. As for next week, it is believed that, due to high costs and low supply, the upward trend in the local steel section market may continue, though with smaller increase margins. 

The prices are on theoretical weight basis, all prices include 17 percent VAT and all prices are ex-warehouse.
 
$1 = RMB 6.21