Chinese domestic steel section market declines further

Chinese domestic steel section prices have continued their decreasing trend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $683/mt (RMB 4,390/mt). The same product is sold at $628/mt (RMB 4,040/mt) in the Tangshan market and at $714/mt (RMB 4,590/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $677/mt (RMB 4,350/mt) in the Shanghai market, at $594/mt (RMB 3,820/mt) in Tangshan and at $729/mt (RMB 4,690/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 $656/mt (RMB 4,220/mt), $619/mt (RMB 3,980/mt) and $715/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, the price of this semi-finished steel product in the Chinese domestic market has softened during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,490/mt ($543/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,510/mt ($546/mt), while the price of 20MnSi billet is at around RMB 3,610/mt ($561/mt). The prices are all ex-mill, including 17 percent VAT.

The soft trend of the local Chinese steel section market has been mainly due to the slight downtrend of upstream billet prices seen during most of the past week. However, on the last day of the week, billet prices declined sharply and this may impact local steel section prices during the week ahead. Overall trading activity is at low levels and appears unlikely to improve. Market inventories are mostly on the low side, which may provide some support for prices. As for the coming week, it is believed that domestic steel section prices will continue their soft trend. 

$1 = RMB 6.43