Chinese domestic steel section market moves on rising trend

Chinese domestic steel section prices have moved upwards during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $624/mt (RMB 4,160/mt). The same product is sold at $616/mt (RMB 4,110/mt) in the Tangshan market and at $676/mt (RMB 4,510/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $621/mt (RMB 4,140/mt) in the Shanghai market, at $615/mt (RMB 4,100/mt) in Tangshan and at $708/mt (RMB 4,720/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 $634/mt (RMB 4,230/mt), $618/mt (RMB 4,120/mt) and $697/mt (RMB 4,650/mt). The prices are all ex-mill, including 16 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 production in the Chinese domestic market have continued their upward trend in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,690/mt ($553/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,710/mt ($556/mt), while the price of 20MnSi billet is at around RMB 3,810/mt ($571/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity has remained weak in the Chinese domestic steel section market which has moved upwards in the past week influenced by increases in billet prices and in futures and spot market prices of rebar. Meanwhile, low inventories have also provided support for steel section prices, though the weakness of demand has limited the upward movement of prices. As for the coming week, it is believed that domestic steel section prices may fluctuate on a slightly soft trend amid slack trading activity.

$1 = RMB 6.67