Low inventory provides support for local Chinese steel section prices

The Chinese domestic steel section market has moved on a slight uptrend 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 $379/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 $369/mt in the Shanghai market, at $348/mt in Tangshan and at $408/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 $369/mt, $345/mt and $422/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 remained unchanged 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.

The local Chinese steel section market has followed a slight uptrend during the past week, while overall trading activity has remained slack. Mills have raised their quoted prices slightly, causing traders to follow their example, while low inventories of certain steel section products have provided support for prices. It is believed that there will be further room for increases in local steel section prices in the coming week.

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