Insufficient support from demand side in local Chinese steel section market

Chinese domestic steel section prices are higher compared to one week ago, having risen during the first part of the past week before starting to decline in the latter part of the week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $432/mt. The same product is sold at $408/mt in the Tangshan market and at $481/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $421/mt in the Shanghai market, at $403/mt in Tangshan and at $485/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 $419/mt, $398/mt and $473/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 are down slightly compared to one week ago. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,090/mt ($377/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,120/mt ($345/mt), while the price of 20MnSi billet is at around RMB 2,210/mt ($360/mt). The prices are all ex-mill, including 17 percent VAT.
           
Overall trading activity in the Chinese domestic steel section market has remained sluggish during the past week. Domestic billet prices switched from upward to downward movement during the given week, prompting a similar change in trend in local steel section prices, especially as support for increased section prices from the demand side has been weak. As for the coming seven days, the domestic steel section market may indicate some slight upward movement if trading activity starts to pick up.