Trading activity remains weak in Chinese domestic steel section market

Over the past two weeks, the Chinese domestic steel section market first moved up but subsequently followed a downward trend.

 

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $507/mt (RMB 3,500/mt). The same product is sold at $472/mt (RMB 3,260/mt) in the Tangshan market and at $523/mt (RMB 3,610/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $503/mt (RMB 3,470/mt) in the Shanghai market, at $467/mt (RMB 3,220/mt) in Tangshan and at $530/mt (RMB 3,660/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 $497/mt (RMB 3,430/mt), $471/mt (RMB 3,250/mt) and $586/mt (RMB 4,040/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.

Billet prices in the Chinese domestic market have increased compared to two weeks ago. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,920/mt ($423/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,940/mt ($426/mt), while the price of 20MnSi billet is at around RMB 3,020/mt ($438/mt). The prices are all ex-mill, including 17 percent VAT.

Around the time of the May Day holiday, influenced by announcements of production cuts, Chinese domestic steel section prices indicated significant increases but subsequently switched to a downward trend after raw materials futures prices declined. Domestic steel section prices are still higher compared to two weeks ago, while trading activity in the market remains weak. Domestic producers do not want to reduce their prices because they are satisfied with their current profit margins. For the coming week, it is thought that steel section prices in the local Chinese market may fluctuate on a slightly soft trend.

 

 

$1 = RMB 6.90