Prices fluctuate in Chinese domestic steel section market

Chinese domestic steel section prices have increased compared to one week ago.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $555/mt (RMB 3,830/mt). The same product is sold at $538/mt (RMB 3,710/mt) in the Tangshan market and at $570/mt (RMB 3,930/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $549/mt (RMB 3,790/mt) in the Shanghai market, at $536/mt (RMB 3,700/mt) in Tangshan and at $562/mt (RMB 3,880/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 $559/mt (RMB 3,860/mt), $539/mt (RMB 3,720/mt) and $620/mt (RMB 4,280/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 risen slightly during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,310/mt ($480/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,340/mt ($484/mt), while the price of 20MnSi billet is at around RMB 3,430/mt ($497/mt). The prices are all ex-mill, including 17 percent VAT.

Chinese domestic steel section prices first moved up during the past week due to improved trading activity and higher billet prices, but then started to soften during the latter part of the week as downstream buyers were unwilling to accept the higher prices. With producers' costs still at high levels, the room for further downward movement of prices is considered to be limited. Traders will likely continue to offer discounts in order to attract business. For the coming week, the market is expected to indicate just minor fluctuations in prices.

 $1 = RMB 6.90