Chinese domestic steel section market moves on soft trend

Chinese domestic steel section prices have mostly declined compared to one week ago.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $560/mt (RMB 3,860/mt). The same product is sold at $522/mt (RMB 3,600/mt) in the Tangshan market and at $562/mt (RMB 3,870/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $557/mt (RMB 3,840/mt) in the Shanghai market, at $530/mt (RMB 3,650/mt) in Tangshan and at $559/mt (RMB 3,850/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 $566/mt (RMB 3,900/mt), $537/mt (RMB 3,700/mt) and $623/mt (RMB 4,290/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.

Billet prices in the Chinese domestic market are now lower compared to last week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,170/mt ($460/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,180/mt ($462/mt), while the price of 20MnSi billet is at around RMB 3,270/mt ($475/mt). The prices are all ex-mill, including 17 percent VAT.
 
In the past week, the Chinese domestic steel section market first moved up and then moved back down due to the start of a downtrend in futures and billet prices, with market prices now lower compared to one week earlier. Overall trading activity has remained sluggish amid the fluctuations seen in steel section prices. Since most traders bought in their inventories at relatively high price levels, this may provide support for market prices to fluctuate at around current levels in the week ahead.

$1 = RMB 6.89