Influenced by the rises in the domestic steel futures market China's section steel market has continued its rising trend during the week ending August 3. However, affected by the hot weather across China these days, market demand has started to decrease. As of August 3, the average prices of section steels in the main Chinese cities are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Angle |
50 mm x 50 mm x 5 m |
Q235 |
4,076 |
+130 |
601 |
+19 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,136 |
+132 |
610 |
+19 |
I-beam |
250 mm x 118 mm x 10 m |
Q235 |
4,184 |
+160 |
617 |
+24 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,180/mt ($617/mt). The same product is sold at RMB 4,220/mt ($622/mt) in the Tangshan market and at RMB 4,150/mt ($612/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,150/mt ($612/mt) in the Shanghai market, at RMB 4,220/mt ($622/mt) in Tangshan and at RMB 4,330/mt ($639/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 4,180/mt ($617/mt), RMB 4,290/mt ($633/mt) and RMB 4,300/mt ($634/mt). The prices are all ex-mill, including 17 percent VAT.
At present, in the Tangshan market, common carbon billets of 150 mm x 150 mm size are priced at RMB 3,690/mt ($544/mt), while prices of low alloy billets are at RMB 3,810/mt ($563/mt). Both prices include 17 percent VAT. The significant increase in billet prices in the Tangshan market has been reflected in the local finished steel market.
Construction in China has slowed down in many regions due to the hot weather. In addition, the power rationing measures implemented by local governments in some areas have contributed to limiting end-user demand. Despite the uptrend in section steel prices, sales activities have shown some softening during the week in question.
On the whole, the current upward trend in China's section steel market has been triggered by the steel futures market and the billet market. The section steel market in China is expected to continue to reflect any changes that occur in the domestic steel futures market.
US$1 = RMB 6.77