Slack activity in Chinese domestic steel section market as traders remain cautious

Chinese domestic steel section prices are now slightly higher 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 $652/mt (RMB 4,350/mt). The same product is sold at $642/mt (RMB 4,280/mt) in the Tangshan market and at $687/mt (RMB 4,580/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $640/mt (RMB 4,270/mt) in the Shanghai market, at $633/mt (RMB 4,220/mt) in Tangshan and at $691/mt (RMB 4,610/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 (RMB 4,220/mt), $651/mt (RMB 4,340/mt) and $697/mt (RMB 4,650/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 increased during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,850/mt ($577/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,870/mt ($580/mt), while the price of 20MnSi billet is at around RMB 3,950/mt ($592/mt). The prices are all ex-mill, including 17 percent VAT.

In the past week, in line with the fluctuating trend of raw material futures and billet prices, Chinese domestic steel section prices first decreased before later indicating a rebound. Overall trading activity for steel sections has remained at low levels as traders are cautious given the fluctuation of prices. As for the coming week, it is thought that domestic steel section prices may fluctuate on an upward trend with the support of recent increases in raw material futures prices.