Chinese domestic steel section market boosted by rising billet prices

The Chinese domestic steel section market has moved on a strong uptrend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $475/mt. The same product is sold at $440/mt in the Tangshan market and at $470/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $459/mt in the Shanghai market, at $440/mt in Tangshan and at $487/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 $460/mt, $453/mt and $476/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 continued to increase by significant margins in the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,580/mt ($397/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,610/mt ($402/mt), while the price of 20MnSi billet is at around RMB 2,700/mt ($415/mt). The prices are all ex-mill, including 17 percent VAT.
 
The main factor contributing to the strong increases seen in the local Chinese steel section market in the past week has been the uptrend of billet prices, while trading activity for steel sections has been at good levels. Inventories are on the low side, which also provides support for steel section prices. It is expected that domestic steel section prices will continue to rise in the coming week as billet prices are also expected to increase further.

$1 = RMB 6.50