Chinese domestic steel section market moves up further

Chinese domestic steel section prices have continued to follow an upward 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 $522/mt (RMB 3,590/mt). The same product is sold at $530/mt (RMB 3,650/mt) in the Tangshan market and at $525/mt (RMB 3,610/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $517/mt (RMB 3,560/mt) in the Shanghai market, at $535/mt (RMB 3,680/mt) in Tangshan and at $526/mt (RMB 3,620/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 $528/mt (RMB 3,630/mt), $517/mt (RMB 3,560/mt) and $600/mt (RMB 4,130/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 in the Chinese domestic market have indicated strong upward movement during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,230/mt ($469/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,240/mt ($471/mt), while the price of 20MnSi billet is at around RMB 3,350/mt ($487/mt). The prices are all ex-mill, including 17 percent VAT.

Amid strong increases in billet prices and hikes in steel section producers’ ex-works prices, the local Chinese steel section market has moved on an overall rising trend during the past week. While trading activity has improved in the given week, it still remains somewhat sluggish as price levels are considered to be on the high side and many buyers are maintaining a wait-and-see stance. Meanwhile, after the strong increases seen in billet prices, it is thought that they may eventually indicate some corrections. As for the week ahead, it is thought that domestic steel section prices will fluctuate around the current high price levels.

 

 

 $1 = RMB 6.88