Chinese domestic steel section market continues to see sluggish activity

Chinese domestic steel section prices have softened compared to one week ago.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $659/mt (RMB 4,360/mt). The same product is sold at $642/mt (RMB 4,250/mt) in the Tangshan market and at $684/mt (RMB 4,530/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $651/mt (RMB 4,310/mt) in the Shanghai market, at $612/mt (RMB 4,050/mt) in Tangshan and at $689/mt (RMB 4,560/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 $642/mt (RMB 4,250/mt), $633/mt (RMB 4,190/mt) and $695/mt (RMB 4,600/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 have decreased on week-on-week basis. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,700/mt ($559/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,720/mt ($562/mt), while the price of 20MnSi billet is at around RMB 3,800/mt ($574/mt). The prices are all ex-mill, including 17 percent VAT.

With the increase seen in billet prices at the beginning of the past week, domestic steel section prices also initially followed an upward trend, but subsequently, with ferrous metal futures prices in China decreasing, billet and steel section prices in the domestic market started to move down. Overall trading activity for steel sections is weak and downstream buyers are mostly maintaining a wait-and-see stance. Since the end of month is drawing close, traders have been more willing to offer discounts. As for the coming week, it is believed that domestic steel section prices may fluctuate on a slightly soft trend, though trading activity may improve as the traditional peak season for sales is approaching.

$1 = RMB 6.62