The steel section market in China has softened slightly in the past week amid ongoing slackness of demand.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $652/mt. The same product is sold at $6290/mt in the Tangshan market and at $672/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $652/mt in the Shanghai market, at $627/mt in Tangshan and at $677/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 $668/mt, $646/mt and $672/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.
As for billet, prices in the Chinese market have moved on a stable trend during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,590/mt ($568/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,620/mt ($573/mt), while the price of 20MnSi billet is around RMB 3,710/mt ($587/mt). The prices are all ex-mill, including 17 percent VAT.
Among the factors contributing to the softness of Chinese steel section prices are the slowness of demand in the domestic construction sector (also influenced by weather conditions), poor export demand, and negative macroeconomic factors. Meanwhile, domestic producer Masteel reduced its quoted prices for steel angles by RMB 30/mt in mid-June, thereby lowering purchasing costs for traders and creating more space for the reduction of market prices. On the other hand, the stability of domestic billet prices prevents any large-scale decrease in steel section prices. The Chinese steel section market is expected to be characterized by a slight downtrend in the coming week.