Chinese domestic steel section market indicates strong increases

Chinese domestic steel section prices have followed a strong uptrend during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $681/mt (RMB 4,510/mt). The same product is sold at $678/mt (RMB 4,490/mt) in the Tangshan market and at $722/mt (RMB 4,780/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $671/mt (RMB 4,440/mt) in the Shanghai market, at $677/mt (RMB 4,480/mt) in Tangshan and at $737/mt (RMB 4,880/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 $659/mt (RMB 4,360/mt), $689/mt (RMB 4,560/mt) and $722/mt (RMB 4,780/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 risen significantly during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,970/mt ($600/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,990/mt ($603/mt), while the price of 20MnSi billet is at around RMB 4,090/mt ($618/mt). The prices are all ex-mill, including 17 percent VAT.

Overall trading activity has improved though remaining at normal levels in the local Chinese steel section market, where prices have risen in the past week due to the influence of higher billet prices and increased rebar futures prices. Traders have kept their inventories at low levels in order to avoid risks. As for the coming week, it is thought that domestic steel section market prices may fluctuate at high price levels in the coming week.

$1 = RMB 6.62