Activity and sentiment improve in Chinese domestic steel section market

The Chinese domestic steel section market has moved on a strong upward trend during the past seven days.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $394/mt. The same product is sold at $380/mt in the Tangshan market and at $407/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $381/mt in the Shanghai market, at $381/mt in Tangshan and at $435/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 $396/mt, $392/mt and $413/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 indicated significant increases in the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,220/mt ($343/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,250/mt ($348/mt), while the price of 20MnSi billet is at around RMB 2,340/mt ($362/mt). The prices are all ex-mill, including 17 percent VAT.
 
Overall trading activity in the local Chinese steel section market has been improving due to warmer weather conditions. Inventories are at relatively low levels, while traders hold a positive view of the future prospects for the market. It is believed that the Chinese domestic steel section market will continue its upward trend in the week ahead, though increase margins may not be so large.

$1 = RMB 6.47