Low trading activity continues to impact local Chinese steel section market

The Chinese domestic steel section market has seen a slight decline in average prices in the past seven days.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $432/mt. The same product is sold at $371/mt in the Tangshan market and at $460/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $416/mt in the Shanghai market, at $366/mt in Tangshan and at $473/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 $406/mt, $369/mt and $448/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 slightly in the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,000/mt ($326/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,030/mt ($331/mt), while the price of 20MnSi billet is at around RMB 2,120/mt ($346/mt). The prices are all ex-mill, including 17 percent VAT.

While billet prices have declined slightly, overall low trading activity has been the main reason for the minor downticks seen in domestic steel section prices in the past week. Traders hold a negative view of the future prospects for the market trend, while it is thought that upstream costs are unlikely to provide any support for current prices. It is believed that domestic steel section prices will continue their slight downtrend in the coming week.