Chinese domestic steel section market prices back to reduce trend

Chinese domestic steel section prices have showed a first raise then reduce trend and close price is lower compare to last week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $640/mt (RMB 4,330/mt). The same product is sold at $563/mt (RMB 3,810/mt) in the Tangshan market and at $645/mt (RMB 4,370/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $609/mt (RMB 4,120/mt) in the Shanghai market, at $557/mt (RMB 3,770/mt) in Tangshan and at $672/mt (RMB 4,550/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 $588/mt (RMB 3,980/mt), $566/mt (RMB 3,830/mt) and $662/mt (RMB 4,480/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, Chinese domestic market prices have showed a reduce trend during past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,400/mt ($502/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,420/mt ($505/mt), while the price of 20MnSi billet is at around RMB 3,500/mt ($517/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity in the local Chinese steel section market has been at low levels since most downstream buyers have not returned from their holiday yet. With rebar future prices showing a declining trend as of the middle of last week, section steel market prices also started to soften, especially in the absence of support from demand. Market inventory levels have recently increased but, considering that demand from construction is expected to pick up soon, the pressure from stock levels is expected to be limited. As for the week ahead, it is believed that domestic steel section prices may fluctuate on a slight uptrend amid support from costs and improving demand.

$1 = RMB 6.77