Trading activity still slack in Chinese domestic steel section market

Chinese domestic steel section prices have continued their upward movement during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $446/mt (RMB 3,070/mt). The same product is sold at $428/mt (RMB 2,950/mt) in the Tangshan market and at $479/mt (RMB 3,300/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $448/mt (RMB 3,090/mt) in the Shanghai market, at $435/mt (RMB 3,000/mt) in Tangshan and at $485/mt (RMB 3,340/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 $464/mt (RMB 3,200/mt), $453/mt (RMB 3,120/mt) and $550/mt (RMB 3,790/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 moved up slightly in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,780/mt ($403/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,810/mt ($408/mt), while the price of 20MnSi billet is at around RMB 2,900/mt ($421/mt). The prices are all ex-mill, including 17 percent VAT.

The price increases seen in the local Chinese steel section market in the past week have been smaller compared to the increases seen in the previous week, while trading activity has remained slack amid the relatively high levels of prices. With the strong performance of the futures market, it is believed that room exists for the further upward movement of domestic steel section prices. It is thought that domestic steel section prices will fluctuate on an upward trend in the week ahead, though much will depend on the trends of ferrous metal futures prices.

$1 = RMB 6.89