Just like other steel product varieties, over the past week section steel prices in the Chinese market have again risen on the back of higher production costs and the mills' increased ex-factory prices, but only to see sluggish trading activity.
Product Name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Angle |
50 mm x 50 mm x 5 m |
Q235 |
3,688 |
+60 |
541 |
+9 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
3,762 |
+72 |
5521 |
+11 |
I-Beam |
250 mm x 118 mm x 10 m |
Q235 |
3,732 |
+88 |
560 |
+13 |
Influenced by the price hikes announced by Magang and Laiwu Steel, a certain degree of confusion has been observed as regards market quotations, with traders holding different views on the prospects for the market. The transportation difficulties caused by the heavy snowfalls in the north have hindered the arrivals of new materials in the eastern and southern China regions where the prices are likely to pick up on account of reduced market inventories.
On the billet side, at present the market prices of 150 mm x 150 mm common carbon billet in northern China are at RMB 3,500 ($513/mt, tax included), with the tax-excluded prices at RMB 3,400/mt ($499/mt); 165 mm x 165 mm common carbon billet is now offered at RMB 3,530/mt ($518/mt, tax included), while the prices of low-alloy billet stand at RMB 3,620/mt ($531/mt). The billet prices in the domestic market soared sharply in recent days before posting fluctuations given the wait-and-see stance adopted by market players.
Due to the transportation diffficulties and the scarcity of purchases concluded by end-side buyers, some mills have halted their operations in recent days. Nevertheless, as most mills still have sufficient stocks in hand, overall market inventory has remained at high levels. Moreover, most mills are now on the verge of suffering losses due to the high prices of billet.
Boosted by the obvious increase in the domestic market, export quotations of Chinese section steel have also climbed up over the past week. At the end of last week, one Chinese mill offered its angle and channel steel at $540/mt CFR South Korea, with its export quotation of small specification H-beam at $525/mt FOB and its large specification price, i.e., for 700 mm x 300 mm, at $575/mt FOB, representing a minor climb compared with previous levels. Meanwhile, it is heard that some customers in South Korea and Southeast Asia have intended to make purchases but are reluctant to conclude deals for the time being on account of the excessive rise in the export quotations of Chinese products.