Chinese domestic steel section market continues to move up

Chinese domestic steel section market has 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 $643/mt (RMB 4,290/mt). The same product is sold at $642/mt (RMB 4,280/mt) in the Tangshan market and at $681/mt (RMB 4,540/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $631/mt (RMB 4,210/mt) in the Shanghai market, at $618/mt (RMB 4,120/mt) in Tangshan and at $685/mt (RMB 4,570/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 $625/mt (RMB 4,170/mt), $625/mt (RMB 4,170/mt) and $691/mt (RMB 4,610/mt). The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese domestic market are unchanged compared to one week ago. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,750/mt ($562/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,770/mt ($565/mt), while the price of 20MnSi billet is at around RMB 3,850/mt ($577/mt). The prices are all ex-mill, including 17 percent VAT.

Chinese domestic steel section prices have continued their upward trend in the past week mainly due to the ongoing increases seen in raw material prices. Demand remains weak since prices are considered to be at very high levels. It is believed that domestic steel section prices may soften in the coming week due to low trading activity and the reduction seen in raw material futures prices at the end of the past week.

$1 = RMB 6.67