Supply increases in sluggish Chinese domestic steel section market

Chinese domestic steel section prices have moved on a slight downtrend during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $407/mt. The same product is sold at $340/mt in the Tangshan market and at $399/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $391/mt in the Shanghai market, at $332/mt in Tangshan and at $426/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 $392/mt, $348/mt and $435/mt. The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.

As for billet, prices in the Chinese domestic market have softened slightly in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB1,830/mt ($278/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,860/mt ($283/mt), while the price of 20MnSi billet is at around RMB 1,950/mt ($296/mt). The prices are all ex-mill, including 17 percent VAT.
 
Overall activity in the Chinese steel section market has remained sluggish in the past week. Domestic producers have resumed production following completion of maintenance works, causing supply volumes to increase, and this has been the main factor contributing to the decline in market prices. As for the coming week, it is believed that domestic steel section prices may continue to indicate slight downward movement. 

$1 =RMB 6.58