Chinese domestic steel section market mostly follows slightly soft trend

Chinese domestic steel section prices have mostly continued to follow a slightly soft trend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $667/mt (RMB 4,230/mt). The same product is sold at $621/mt (RMB 3,940/mt) in the Tangshan market and at $718/mt (RMB 4,550/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $664/mt (RMB 4,210/mt) in the Shanghai market, at $623/mt (RMB 3,950/mt) in Tangshan and at $741/mt (RMB 4,700/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 $667/mt (RMB 4,230/mt), $634/mt (RMB 4,020/mt) and $724/mt (RMB 4,590/mt). The prices are all ex-mill, including 16 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 indicated slight decreases in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,570/mt ($563/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,590/mt ($566/mt), while the price of 20MnSi billet is at around RMB 3,690/mt ($582/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity in the Chinese steel section market has been at normal levels in the past week. Decreases in billet prices and in raw material futures prices at the start of the week contributed to declines in steel section prices. However, the declines in question were relatively small due to support from low inventory and low supply volumes. Meanwhile, billet prices became firmer towards the end of the week, which provided additional support for steel section prices. However, traders are mostly seeking to sell as much as possible during May as demand is expected to be weaker in June and July, and this may contribute to a soft price trend in May. As for the coming week, it is believed that domestic steel section prices may fluctuate on a slightly soft trend.  

$1 = RMB 6.34