Chinese domestic steel section market moves on fluctuating trend

The Chinese domestic steel section market has moved on a fluctuating 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 $660/mt (RMB 4,380/mt). The same product is sold at $639/mt (RMB 4,240/mt) in the Tangshan market and at $691/mt (RMB 4,590/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $646/mt (RMB 4,290/mt) in the Shanghai market, at $639/mt (RMB 4,240/mt) in Tangshan and at $697/mt (RMB 4,630/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 $630/mt (RMB 4,180/mt), $642/mt (RMB 4,260/mt) and $705/mt (RMB 4,680/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 increased in the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,730/mt ($562/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,750/mt ($565/mt), while the price of 20MnSi billet is at around RMB 3,830/mt ($577/mt). The prices are all ex-mill, including 17 percent VAT.

The local Chinese steel section market moved upwards during the early part of the past week with the support of billet prices, but later decreased as overall trading activity remained at low levels. Downstream buyers were reluctant to accept the increased prices and so most traders chose to reduce their prices again. As for the coming week, it is believed that the steel section market may fluctuate on a slightly soft trend as it is thought that billet prices may decrease under the influence of declines in the steel futures market. 

$1 = RMB 6.64