Chinese domestic steel section market moves up on back of higher costs and reduced supply

Chinese domestic steel section prices have increased by significant margins during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $421/mt (RMB 2,850/mt). The same product is sold at $391/mt (RMB 2,650/mt) in the Tangshan market and at $451/mt (RMB 3,050/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $425/mt (RMB 2,880/mt) in the Shanghai market, at $397/mt (RMB 2,690/mt) in Tangshan and at $473/mt (RMB 3,200/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 $434/mt (RMB 2,940/mt), $409/mt (RMB 2,770/mt) and $517/mt (RMB 3,500/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 in the Chinese domestic market have moved up in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,450/mt ($362/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,480/mt ($366/mt), while the price of 20MnSi billet is at around RMB 2,570/mt ($380/mt). The prices are all ex-mill, including 17 percent VAT.
 
Trading activity in the Chinese domestic steel section market has remained at low levels in the past week. Strong increases in coking coal futures prices in China today, November 7, have contributed to rises in domestic steel section prices. Rising raw material prices are expected to continue to provide support for steel section prices, while supply volumes of steel sections have been limited due to environment protection measures. Accordingly, domestic steel section prices are expected to maintain their upward trend in the coming week. 

$1 = RMB 6.77