Chinese domestic steel section market moves up sharply

Chinese domestic steel section prices have moved on a strong uptrend during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $557/mt (RMB 3,830/mt). The same product is sold at $560/mt (RMB 3,850/mt) in the Tangshan market and at $563/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 $550/mt (RMB 3,780/mt) in the Shanghai market, at $582/mt (RMB 4,000/mt) in Tangshan and at $560/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 $562/mt (RMB 3,860/mt), $562/mt (RMB 3,860/mt) and $632/mt (RMB 4,340/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 increased during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,300/mt ($480/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,310/mt ($482/mt), while the price of 20MnSi billet is at around RMB 3,420/mt ($498/mt). The prices are all ex-mill, including 17 percent VAT.
 
Overall trading activity in the local Chinese steel section market is back to normal levels, while higher billet prices have provided support for the strong increases seen in steel section prices. However, traders are concerned that the ongoing upward movement of prices may impact trading activity. It is believed that market prices may continue their rising trend in the week ahead, though increase margins may be smaller due to lack of sufficient support from demand.

$1 = RMB 6.87