Supply slightly on the weak side in China’s section steel market

Tuesday, 10 August 2010 17:05:15 (GMT+3)   |  

In the past week China's section steel market has climbed slightly, with prices fluctuating in some regions. Due to reduced supply and lower inventory, the prices of section steel have increased, though transaction activity is not so smooth.

Product Name

Specification

Category

Average Price (RMB/mt)

Weekly change (RMB/mt)

Price

($/mt)

Weekly change ($/mt)

Angle

50 mm x 50 mm x 5 m

Q235

4,100

+24

605

+4

Channel

160 mm x 65 mm x 8.5 m

Q235

4,166

+30

614

+4

I-Beam

250 mm x 118 mm x 10 m

Q235

4,218

+34

622

+5

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,200/mt ($619/mt). The same product is sold at RMB 4,220/mt ($622/mt) in the Tangshan market and at RMB 4,150/mt ($612/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,200/mt ($619/mt) in the Shanghai market, at RMB 4,270/mt ($630/mt) in Tangshan and at RMB 4,330/mt ($639/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 RMB 4,200/mt ($619/mt), RMB 4,340/mt ($640/mt) and RMB 4,300/mt ($634/mt). The prices are all ex-mill, including 17 percent VAT.

Currently, the prices of section steel are fluctuating in line with billet prices. The offers of billet producers in Tangshan are basically stable, with common carbon billets of 150 mm x 150 mm size quoted at RMB 3,860/mt ($570/mt), while 165 mm x 225 mm billets priced at RMB 3,890/mt, while offers of low alloy billets are standing at RMB 3,980/mt ($588/mt).

Since the transaction situation is poor, most section traders are cautious about their purchases, and some specifications are not so easy to find in the market. Meanwhile, prices in some regions have seen an increase as a result of supply shortages.

Thanks to some confusion as regards prices in the domestic section steel market, a greater variety of prices is now seen in the market.

(US$1 = RMB 6.77)


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