Chinese domestic steel section market follows downward trend

Chinese domestic steel section prices have indicated significant decreases during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $645/mt (RMB 4,480/mt). The same product is sold at $578/mt (RMB 4,020/mt) in the Tangshan market and at $681/mt (RMB 4,730/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $619/mt (RMB 4,300/mt) in the Shanghai market, at $583/mt (RMB 4,050/mt) in Tangshan and at $696/mt (RMB 4,840/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 $614/mt (RMB 4,270/mt), $601/mt (RMB 4,180/mt) and $688/mt (RMB 4,780/mt). The prices are all ex-mill, including 16 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.

As for billet, prices of the semi-finished steel product in the Chinese domestic market have decreased by relatively large margins during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,680/mt ($529/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,700/mt ($532/mt), while the price of 20MnSi billet is at around RMB 3,780/mt ($544/mt). The prices are all ex-mill, including 16 percent VAT.

In the past week, overall trading activity has been at low levels in the Chinese domestic steel section market where the price movement has reflected the significant decreases seen in upstream billet prices and rebar futures prices. Although supply volumes have declined, support for steel section prices is still weak. Meanwhile, demand has continued to slacken due to cold weather conditions. As for the week ahead, considering weak demand and the downward trend of upstream steel product prices, it is believed that domestic steel section prices in China may continue their soft trend.

$1 = RMB 6.95