Chinese domestic steel section market fluctuates on upward trend

Chinese domestic steel section market has fluctuated on 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 $672/mt (RMB 4,410/mt). The same product is sold at $648/mt (RMB 4,250/mt) in the Tangshan market and at $701/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 $663/mt (RMB 4,350/mt) in the Shanghai market, at $636/mt (RMB 4,170/mt) in Tangshan and at $706/mt (RMB 4,630/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 $652/mt (RMB 4,280/mt), $646/mt (RMB 4,240/mt) and $712/mt (RMB 4,670/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 softened slightly in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,710/mt ($566/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,730/mt ($569/mt), while the price of 20MnSi billet is at around RMB 3,810/mt ($581/mt). The prices are all ex-mill, including 17 percent VAT.

Overall trading activity in the Chinese steel section market has been at normal levels in the past week. With production volumes being reduced sharply in the middle of last week, steel section prices started to move upwards, though they later indicated a slight softening under the influence of billet prices. Low market inventories and supply volumes are still providing strong support for section prices. As for the coming week, it is believed that steel section prices may follow a fluctuating trend again, with slight declines possible due to the soft trend of billet prices. 

$1 = RMB 6.57