Section prices register minor decreases in China

During the week ending June 8, section prices have continued to trend down, showing minor decreases, in the local Chinese market, with considerable decreases seen in H-section prices. As of June 8, average section prices in the main Chinese cities are as follows:

In the Shanghai market, the price of 50 mm x 50 mm x 5 m angle is now at RMB 4,000/mt ($587/mt). The same product is sold at RMB 4,000/mt ($587/mt) in the Tangshan market, while it is sold at RMB 4,150/mt ($609/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m channel stand at RMB 4,030/mt ($591/mt) in the Shanghai market, at RMB 4,020/mt ($589/mt) in Tangshan and at RMB 4,310/mt ($632/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 4,100/mt ($601/mt), RMB 4,230/mt ($620/mt) and RMB 4,250/mt ($623/mt). The prices are all ex-mill, including 17 percent VAT.

Currently, in the Tangshan market, common carbon billets of 150 mm x 150 mm size are priced at RMB 3,720/mt ($545/mt), while prices of low alloyed billets are at RMB 3,740/mt ($548/mt). Both prices include 17 percent VAT.

During the past week, section prices in the Chinese domestic market have decreased slightly, with market activity indicating a poor performance. As some traders have reported, even with certain discounts being offered, buyers have been maintaining a wait-to-see approach to the market. Looking forward, market participants are now relatively pessimistic. In recent weeks, some domestic section mills have implemented overhauls of equipment instead of continuing production, in order to reduce output.

In the short term, domestic section prices in China are expected to maintain their downward trend accompanied by a further softening of trading volumes.