Chinese domestic steel section market mostly moves up

Domestic prices in the local Chinese steel section market have mostly moved up during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $535/mt (RMB 3,660/mt). The same product is sold at $522/mt (RMB 3,570/mt) in the Tangshan market and at $586/mt (RMB 4,010/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $526/mt (RMB 3,600/mt) in the Shanghai market, at $512/mt (RMB 3,500/mt) in Tangshan and at $595mt (RMB 4,070/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 $524/mt (RMB 3,590/mt), $515/mt (RMB 3,520/mt) and $599/mt (RMB 4,100/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, Chinese domestic market showed a slightly upward trend during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,220/mt ($471/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,240/mt ($474/mt), while the price of 20MnSi billet is at around RMB 3,320/mt ($485/mt). The prices are all ex-mill, including 17 percent VAT.

Although domestic prices in the local Chinese section market have followed diverse trends, prices have mostly moved up in the past week, with the influence of the upward movement of the upstream billet prices and raw material future prices. But as domestic steel section prices increase, the overall trading volume in the local Chinese section market has significantly declined. Therefore, certain traders have chosen to reduce their domestic section prices. Meanwhile, the market inventory is at very low levels, still strongly supporting the section prices. However, since this is the last week of the current month, traders are under pressure of funding. Market sources state that traders may mostly focus on their sales in order to conclude more deals. As for the next week, domestic steel section prices in China are expected to fluctuate in a narrow range.

$1 = RMB 6.84