Chinese domestic steel section market moves down

Chinese domestic steel section prices have indicated significant decreases during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $546/mt (RMB 3,750/mt). The same product is sold at $491/mt (RMB 3,370/mt) in the Tangshan market and at $557/mt (RMB 3,830/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $536/mt (RMB 3,680/mt) in the Shanghai market, at $485/mt (RMB 3,330/mt) in Tangshan and at $547/mt (RMB 3,760/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 $534/mt (RMB 3,670/mt), $504/mt (RMB 3,460/mt) and $611/mt (RMB 4,200/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.

Meanwhile, billet prices in the Chinese domestic market followed a downward trend during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,060/mt ($445/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,080/mt ($448/mt), while the price of 20MnSi billet is at around RMB 3,160/mt ($460/mt). The prices are all ex-mill, including 17 percent VAT.
 
The Chinese steel section market has moved down during the past week and overall trading activity has been slack. With upstream billet prices continuing to soften, there is a lack of support from the cost side for section prices. Meanwhile, the low trade volume causes traders keep reducing prices in order to attract deals. Also, since it is near the end of the month, traders have been willing to lower their prices and bring in cash. However, with prices close to cost levels, it is believed that decrease margins in the market will be smaller in the coming week.