Following the uptrend seen in the semi-finished market, section steel prices in the Chinese domestic market have surged despite the lack of any support from the end-users. As of November 9, the average section steel sales prices in the main regions of China are as follows:
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 |
4,443 |
+123 |
668 |
+18 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,473 |
+110 |
673 |
+17 |
I-beam |
250 mm x 118 mm x 10 m |
Q235 |
4,533 |
+63 |
682 |
+9 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,430/mt ($666/mt). The same product is sold at RMB 4,350/mt ($654/mt) in the Tangshan market and at RMB 4,550/mt ($684/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,450/mt ($669/mt) in the Shanghai market, at RMB 4,420/mt ($665/mt) in Tangshan and at RMB 4,550/mt ($684/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 RMB 4,420/mt ($665/mt), RMB 4,580/mt ($689/mt) and RMB 4,600/mt ($692/mt). The prices are all ex-mill, including 17 percent VAT.
In the Tangshan market the price of common carbon billets of 150 mm x 150 mm size has risen to RMB 4,090/mt ($615/mt), while the price of low alloy billet has increased to RMB 4,210/mt ($633/mt). Both prices include 17 percent VAT. Billet prices in the Tangshan market have registered an increase of about RMB 130/mt ($20/mt) in the past week compared with the previous week. Market players think that this increase has not been triggered by end-user demand, but has been mainly due to the destocking activities of domestic traders at higher price levels.
In line with the rise in billet prices, production costs of section steel producers have been pushed up, and so many producers have raised their ex-mill prices, with traders following their example. However, given the lack of any revival of demand, market insiders are not so positive on the prospects for the future market. It is thought that the pricing trend in the coming period will depend on the overall performance in the domestic steel market as well as the tendency of billet prices.