Chinese domestic steel section market continues to move up

Chinese domestic steel section prices have followed an upward trend during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $635/mt (RMB 4,340/mt). The same product is sold at $620/mt (RMB 4,240/mt) in the Tangshan market and at $673/mt (RMB 4,600/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $624/mt (RMB 4,270/mt) in the Shanghai market, at $617/mt (RMB 4,220/mt) in Tangshan and at $700/mt (RMB 4,790/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 $630/mt (RMB 4,310/mt), $605/mt (RMB 4,140/mt) and $693/mt (RMB 4,740/mt). The prices are all ex-mill, including 16 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have continued to rise in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,850/mt ($563/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,870/mt ($566/mt), while the price of 20MnSi billet is at around RMB 3,970/mt ($580/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity has been at normal levels in the past week in the local Chinese steel section market where prices have increased supported by rises in upstream billet prices and in rebar future prices. The trading activity has improved given the increases seen in steel section prices. Supply is at low levels due to environmental protection measures and producers are seeking to raise their quotations. As for the coming week, it is believed that domestic steel section prices may fluctuate on an upward trend.

$1 = RMB 6.84