Chinese domestic steel section market mostly moves on rising trend

The Chinese domestic steel section market has mostly followed an upward 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 $664/mt (RMB 4,240/mt). The same product is sold at $624/mt (RMB 3,990/mt) in the Tangshan market and at $714/mt (RMB 4,560/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $660/mt (RMB 4,220/mt) in the Shanghai market, at $631/mt (RMB 4,030/mt) in Tangshan and at $737/mt (RMB 4,710/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 $668/mt (RMB 4,270/mt), $651/mt (RMB 4,160/mt) and $723/mt (RMB 4,620/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 have fluctuated on an upward trend during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,640/mt ($570/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,660/mt ($573/mt), while the price of 20MnSi billet is at around RMB 3,760/mt ($588/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, while the price trend has been supported by higher billet prices and low inventories. However, demand has lately started to show signs of weakness, resulting in slight downticks in prices in a few local markets in China. On the other hand, producers' price levels remain at high levels, providing support for market prices. As for the coming week, the domestic steel section market may be characterized by a slight softness prices as production volumes have increased and as demand softens.

$1 = RMB 6.39