Low inventory and weak demand in Chinese domestic steel section market

The Chinese domestic steel section market has continued its upward trend during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $422/mt. The same product is sold at $396/mt in the Tangshan market and at $451/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $415/mt in the Shanghai market, at $407/mt in Tangshan and at $478/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 $429/mt, $427/mt and $497/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 indicated a strong upward trend in the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,260/mt ($341/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,290/mt ($345/mt), while the price of 20MnSi billet is at around RMB 2,380/mt ($359/mt). The prices are all ex-mill, including 17 percent VAT.
 
The increases in upstream billet prices have contributed to higher prices from producers and traders in the domestic steel section market in the past seven days. Although overall trading activity is slow, inventories in the market are on the low side. As for the coming week, it is believed that domestic steel section prices will fluctuate on an upward trend.

$1 = RMB 6.63