Chinese domestic steel section market mostly moves down slightly

Chinese domestic steel section market has mostly continued to move down slightly in past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $627/mt (RMB 4,150/mt). The same product is sold at $597/mt (RMB 3,950/mt) in the Tangshan market and at $675/mt (RMB 4,470/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $624/mt (RMB 4,130/mt) in the Shanghai market, at $600/mt (RMB 3,970/mt) in Tangshan and at $707/mt (RMB 4,680/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 $637/mt (RMB 4,220/mt), $615/mt (RMB 4,070/mt) and $696/mt (RMB 4,610/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 risen slightly in the past seven days, supported by the rebound of rebar futures prices towards the end of the 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 3,750/mt ($566/mt). The prices are all ex-mill, including 16 percent VAT.

Trading activity in the local Chinese steel section market has remained at low levels. Supply volumes have increased recently, while most traders hold a negative view of the market prospects and have been willing to reduce prices in order to close more deals. As for the coming week, it is thought that domestic steel section prices may mainly continue to follow a slightly soft trend amid weak demand and higher inventory.

$1 = RMB 6.62