No signs of demand improvement in local Chinese steel section market

The Chinese domestic steel section market has continued to decline 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 $387/mt. The same product is sold at $316/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 $376/mt in the Shanghai market, at $321/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 $371/mt, $323/mt and $416/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 followed a downward trend during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,730/mt ($279/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,760/mt ($283/mt), while the price of 20MnSi billet is at around RMB 1,850/mt ($298/mt). The prices are all ex-mill, including 17 percent VAT.

Overall trading activity in the local Chinese steel section market has remained sluggish in the past week. The decreases seen in both billet prices and iron ore prices have contributed to the declines seen in local steel section prices. There have not been any signs of an improvement in downstream demand. As for the coming week, the market is expected to continue to move on a downward trend.

Section steel prices in local Chinese market

Product name	Spec.	Category	City	Steel plant/origin	Price (RMB/mt)	Price ($/mt)	Weekly change (RMB/mt)
Angle	1 mm x 1 mm x 5 mm	Q235	Shanghai	Masteel	2,400	386	↓80
			Beijing	Tangshan	2,170	349	↓30
			Tangshan	Tangshan	1,960	316	↓90
			Tianjin	Zhaobo	2,430	391	0
			Guangzhou	Tongsteel	2,590	417	↓20
			Average	-	2,310	372	↓44
Channel	160 mm x 65 mm x 8.5 mm	Q235	Shanghai	Masteel	2,330	375	↓80
			Beijing	Xuangang	2,190	353	↓30
			Tangshan	Tangshan	1,990	320	↓40
			Tianjin	Jiangtian	2,030	327	↓60
			Guangzhou	Liusteel	2,530	407	↓100
			Average	-	2,214	357	↓62
I Beam	21 mm x 118 mm x 10 mm	Q235	Shanghai	Laiwu	2,300	370	↓80
			Beijing	Laiwu	2,230	359	↓30
			Tangshan	Tangshan	2,000	322	↓90
			Tianjin	Haicheng	2,100	338	↓180
			Guangzhou	Haicheng	2,580	415	↓30
			Average	-	2,242	361	↓82

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