In the past week, the steel section market in China has seen a sharp downward movement.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $627/mt. The same product is sold at $562/mt in the Tangshan market and at $649/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $625/mt in the Shanghai market, at $578/mt in Tangshan and at $676/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 $633/mt, $595/mt and $653/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in China can be viewed in the SteelOrbis price reports section.
As for billet, prices in the Chinese market registered significant downward movement during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,280/mt ($519/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,310/mt ($524/mt), while the price of 20MnSi billet is around RMB 3,400/mt ($538/mt). The prices are all ex-mill, including 17 percent VAT.
While demand has weakened further in the Chinese steel section market, mills have continued to maintain their production rates and this has contributed to the lack of equilibrium between supply and demand in the market. Meanwhile, activity in construction of social housing is below desired levels. The sharp fall in billet prices in Tangshan means there is less support for long steel prices. Heavy rainfall and floods in Beijing and Tangshan at the weekend have caused some traders to panic. It is expected that the steel section market in China will mostly follow a downward trend in the coming weeks.