Chinese domestic steel section market edges up slightly

Chinese domestic steel section prices are mostly just slightly higher 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 $692/mt (RMB 4,390/mt). The same product is sold at $653/mt (RMB 4,140/mt) in the Tangshan market and at $727/mt (RMB 4,610/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $686/mt (RMB 4,350/mt) in the Shanghai market, at $655/mt (RMB 4,150/mt) in Tangshan and at $743/mt (RMB 4,710/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 $672/mt (RMB 4,260/mt), $662/mt (RMB 4,200/mt) and $732/mt (RMB 4,640/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 of the semi-finished steel product in the Chinese domestic market have declined slightly on week-on-week basis. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,730/mt ($588/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,750/mt ($591/mt), while the price of 20MnSi billet is at around RMB 3,850/mt ($607/mt). The prices are all ex-mill, including 17 percent VAT.

Trading activity in the local Chinese steel section market has remained at low levels in the past week. At the beginning of the week, prices of most steel section products followed the upward trend of billet prices. However, with rebar future prices and billet prices indicating decreases later in the week, domestic steel section prices also began to soften. Downstream buyers have mainly been maintaining a wait-and-see stance, while it is thought that demand will increase towards the end of the current month. Traders are still upbeat on the prospects for the market. Overall, it is thought that domestic steel section prices will fluctuate on an upward trend in the coming week.

$1 = RMB 6.34