Chinese domestic steel section market increases on back of higher billet prices

Chinese domestic steel section prices have increased during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $663/mt (RMB 4,390/mt). The same product is sold at $627/mt (RMB 4,150/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 $648/mt (RMB 4,290/mt) in the Shanghai market, at $616/mt (RMB 4,080/mt) in Tangshan and at $692/mt (RMB 4,580/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 $628/mt (RMB 4,160/mt), $628/mt (RMB 4,160/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 table below. 

As for billet, prices of the semi-finished steel product in the Chinese domestic market have increased significantly in the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,630/mt ($548/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,650/mt ($551/mt), while the price of 20MnSi billet is at around RMB 3,730/mt ($563/mt). The prices are all ex-mill, including 17 percent VAT.

The local Chinese steel section market has followed the upward trend of billet prices during the past week. But the higher prices have had a negative impact on trading activity and downstream users have resumed a wait-and-see stance. Market inventories are at low levels, providing some support for steel section prices. It is believed that domestic steel section prices in China may fluctuate on an upward trend in the coming week with the support of billet prices, though the price increase margins may be smaller compared to the past week.

$1 = RMB 6.62