Chinese domestic steel section market moves on rising trend

Chinese domestic steel section prices have increased compared to pre-holiday price levels.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $694/mt (RMB 4,380/mt). The same product is sold at $656/mt (RMB 4,140/mt) in the Tangshan market and at $731/mt (RMB 4,610/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $688/mt (RMB 4,340/mt) in the Shanghai market, at $658/mt (RMB 4,150/mt) in Tangshan and at $746/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 $674/mt (RMB 4,250/mt), $659/mt (RMB 4,160/mt) and $735/mt (RMB 4,640/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 steel product in the Chinese domestic market have moved upwards. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,740/mt ($593/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,760/mt ($596/mt), while the price of 20MnSi billet is at around RMB 3,860/mt ($612/mt). The prices are all ex-mill, including 17 percent VAT.

Chinese domestic steel section prices have increased after the Chinese New Year holiday, supported by increases in rebar futures and billet prices in China. However, price increase margins have been on the small side as overall trading activity is at low levels since most traders are not back from their holidays yet. Traders are optimistic on the future prospects for the trend of domestic steel section prices. It is believed that market prices will fluctuate on an upward trend in the week ahead.

$1 = RMB 6.33