Sales prices for section steels, especially for H beams, have continued to decrease in the Chinese domestic market during the week ending June 1. As of June 1, average section prices in the main Chinese cities are as follows:
Product Name | Specification | Category | Average Price (R MB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Angle | 50 mm x 50 mm x 5 m | Q235 | 4,046 | -20 | 593 | -3 |
Channel | 160 mm x 65 mm x 8.5 m | Q235 | 4,092 | -20 | 600 | -3 |
I beam | 250 mm x 118 mm x 10 m | Q235 | 4,200 | -40 | 616 | -6 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m angle is at RMB 4,030/mt ($591/mt). The same product is sold at RMB 4,000/mt ($587/mt) in the Tangshan market, while it is sold at RMB 4,200/mt ($616/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m channel stand at RMB 4,060/mt ($595/mt) in the Shanghai market, at RMB 4,020/mt ($589/mt) in Tangshan and at RMB 4,350/mt ($638/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 RMB 4,150/mt ($609/mt), RMB 4,250/mt ($623/mt) and RMB 4,300/mt ($630/mt). The prices are all ex-mill, including 17 percent VAT.
During the week in question, billet prices in the local Chinese market have been fluctuating with a price gap of RMB 150/mt ($22/mt) seen between the upper end and the lower end. After billet producers in Tangshan raised their offers by RMB 50/mt ($7/mt) at the weekend, billet prices have remained stable till now. In the Tangshan market, common carbon billets of 150 mm x 150 size are currently priced at RMB 3,750/mt ($550/mt), while prices of low alloyed billets are at RMB 3,870/mt ($567/mt). Both prices include 17 percent VAT. However, only a few deals have been transacted at these levels.
With many uncertainties in the market, section steel producers have made purchases of billet supplies based strictly on their production schedules. Thus, there is not much pressure from feedstock inventories. Some steel mills are still operating at low capacities.
In the past week, the Chinese section market has been characterized by a downward trend, with temporary stability seen in some cities. Generally speaking, a wait-and-see atmosphere now prevails in the market. It is expected that demand will not improve in the short term.