Chinese domestic steel section market prices follow a rising trend

Chinese domestic steel section prices have increased compared to the levels seen before the Chinese New Year holiday.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $645/mt (RMB 4,380/mt). The same product is sold at $580/mt (RMB 3,940/mt) in the Tangshan market and at $644/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 $608/mt (RMB 4,130/mt) in the Shanghai market, at $574/mt (RMB 3,900/mt) in Tangshan and at $673/mt (RMB 4,570/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 3,990/mt), $583/mt (RMB 3,960/mt) and $663/mt (RMB 4,500/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 an upward trend compare the week before Chinese New Year. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,520/mt ($518/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,540/mt ($521/mt), while the price of 20MnSi billet is at around RMB 3,620/mt ($533/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity in the Chinese steel section market has remained at low levels since most downstream buyers have not yet returned from their holidays. While domestic steel section prices mostly remained stable during the holiday period, they have increased on the first day back after the holiday due to the rises seen in billet prices and in rebar futures prices. As for the week ahead, it is believed that the domestic steel section market will continue to follow a rising trend due to strengthening demand and increases in raw material futures prices.  

$1 = RMB 6.79