During the past week China's section steel market has observed a steady rise. Meanwhile, market demand has been slightly weak due to slack purchases from users.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Angle |
50 mm x 50 mm x 5 m |
Q235 |
3,694 |
+30 |
542 |
+4 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
3,750 |
+44 |
550 |
+6 |
I Beam |
250 mm x 118 mm x 10 m |
Q235 |
3,800 |
+16 |
557 |
+2 |
Demand in China's domestic section steel market has begun to recover over the past week, with purchases of large and medium sections increasing compared with the previous week; however, the downstream market has not fully recovered yet. Demand for H-beam has basically returned to normal levels.
As for the steel mills, their H-beam prices in March are at the same levels as in February, while prices of large and medium sections have increased. At present, the market prices of small angle and channel steel are lower than the ex-factory prices.
On the billet side, quotations in the mainstream market of 150 mm x 150 mm common carbon billet are at RMB 3,400/mt ($499/mt, tax-included), with prices reaching as low as RMB 3,380/mt ($496/mt); 165 mm x 165 mm common carbon billet is now offered at RMB 3,430/mt ($503/mt, tax-included), while the prices of low alloy billet stand at RMB 3,520/mt ($516/mt).
As regards the macroeconomic situation, new loans this March may exceed RMB 700 billion; meanwhile, with the central bank raising the deposit reserve ratio by 0.5 of a percentage point, funds of around RMB 300 billion are expected to be frozen, which will increase the pressure on liquidity in March.
In conclusion, China's domestic steel section prices are expected to continue to rise steadily, with the prospects for H-beams appearing more positive than for beams, angles and channels. Overall, it is thought that the prospects for the market in March will be brighter than they were in February.