Chinese domestic steel section market moves on a soft trend

Chinese domestic steel section prices have moved on a soft 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 $677/mt (RMB 4,250/mt). The same product is sold at $632/mt (RMB 3,990/mt) in the Tangshan market and at $719/mt (RMB 4,520/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $670/mt (RMB 4,210/mt) in the Shanghai market, at $615/mt (RMB 3,860/mt) in Tangshan and at $739/mt (RMB 4,640/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 $666/mt (RMB 4,180/mt), $622/mt (RMB 3,910/mt) and $721/mt (RMB 4,530/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, prices of the semi-finished product in the Chinese domestic market have softened significantly in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,300/mt ($525/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,320/mt ($529/mt), while the price of 20MnSi billet is at around RMB 3,420/mt ($545/mt). The prices are all ex-mill, including 17 percent VAT.

Against the backdrop of decreases in billet and raw material prices and also in the futures markets, the local Chinese steel section market has moved on a soft trend in the past week, while trading activity in the market has been at low levels, though it has improved slightly following the decreases seen in prices. Downstream buyers are mostly maintaining a wait-and-see stance given the downward trend of prices. As for the coming week, it is believed that the domestic steel section market may decline further, though with smaller decrease margins.

$1 = RMB 6.28