Slow demand and higher billet costs affect local Chinese steel section market

Monday, 31 March 2014 19:10:35 (GMT+3)   |   Shanghai
       

The Chinese domestic steel section market has been characterized by minor fluctuations in prices in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $574/mt. The same product is sold at $515/mt in the Tangshan market and at $555/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $550/mt in the Shanghai market, at $522/mt in Tangshan and at $587/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 $563/mt, $545/mt and $599/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 rebounded during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,910/mt ($474/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,940/mt ($479/mt), while the price of 20MnSi billet is around RMB 3,030/mt ($494/mt). The prices are all ex-mill, including 17 percent VAT.

During the past week, steel section prices in certain local markets in China have decreased slightly influenced by low trade volumes, while prices in other local markets have indicated minor rebounds due to the upticks in billet prices. Mills have mostly kept their prices stable. It is believed that there is still room for further downward price movement in the market since Masteel will resume steel section production in April, which will increase the supply volume in the market. For the coming week, China's domestic steel section market is expected to move mostly on a stable trend, with some slight downticks also possible. 


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