Chinese domestic steel section market moves up slightly

The Chinese domestic steel section market has fluctuated on a slightly upward trend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $666/mt (RMB 4,270/mt). The same product is sold at $622/mt (RMB 3,990/mt) in the Tangshan market and at $707/mt (RMB 4,540/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $661/mt (RMB 4,240/mt) in the Shanghai market, at $629/mt (RMB 4,030/mt) in Tangshan and at $735/mt (RMB 4,710/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 $672/mt (RMB 4,310/mt), $655mt (RMB 4,200/mt) and $721/mt (RMB 4,620/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 steel product in the Chinese domestic market have risen slightly in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,650/mt ($569/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,670/mt ($573/mt), while the price of 20MnSi billet is at around RMB 3,770/mt ($588/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity has been at normal levels in the past week in the local Chinese steel section market where prices have risen slightly supported by upticks in billet prices. Meanwhile, increases in the rebar futures market in China have also provided support for rises in domestic steel section and billet prices. As for the coming week, with costs still on the high side and market inventories remaining at low levels, the domestic steel section market may continue to fluctuate on an upward trend, despite the approach of the off-season for business.

$1 = RMB 6.41