Chinese domestic steel section market mostly moves on rising trend

The Chinese domestic steel section market has mostly moved on an upward trend during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $654/mt (RMB 4,340/mt). The same product is sold at $636/mt (RMB 4,220/mt) in the Tangshan market and at $697/mt (RMB 4,630/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $648/mt (RMB 4,300/mt) in the Shanghai market, at $636/mt (RMB 4,220/mt) in Tangshan and at $715/mt (RMB 4,750/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 $636/mt (RMB 4,220/mt), $649/mt (RMB 4,310/mt) and $702/mt (RMB 4,660/mt). The prices are all ex-mill, including 17 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 have increased in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,800/mt ($572/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,820/mt ($575/mt), while the price of 20MnSi billet is at around RMB 3,900/mt ($587/mt). The prices are all ex-mill, including 17 percent VAT.

Trading activity in the local Chinese steel section market has remained at low levels during the past week, resulting in a softening of prices at the beginning of the given week. However, prices subsequently moved on a rising trend with support from higher futures and billet prices. Despite the ongoing weakness of downstream demand, market prices are also supported by low market inventories against the backdrop of production restrictions within the scope of environmental measures. As for the coming week, it is believed that domestic steel section prices may just indicate slight fluctuations.

$1 = RMB 6.64