Chinese domestic steel section market prices maintain their uptrend

Chinese domestic steel section prices have maintained their 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 $635/mt (RMB 4,370/mt). The same product is sold at $634/mt (RMB 4,360/mt) in the Tangshan market and at $676/mt (RMB 4,650/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $626/mt (RMB 4,310/mt) in the Shanghai market, at $632/mt (RMB 4,350/mt) in Tangshan and at $702/mt (RMB 4,830/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 $631/mt (RMB 4,340/mt), $628/mt (RMB 4,320/mt) and $693/mt (RMB 4,770/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 continued to increase during past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 4,000/mt ($581/mt), the price of 165 x 225 mm rectangular billet stands at RMB 4,020/mt ($584/mt), while the price of 20MnSi billet is at around RMB 4,120/mt ($599/mt). The prices are all ex-mill, including 16 percent VAT.

Domestic steel section prices in China have followed an uptrend over the past week. Overall trading activity in the local Chinese steel section market has remained at normal levels in the same period. Upstream billet prices as well as rebar future market prices have showed a strong upward movement, mainly causing local Chinese steel section market to move up. Both supply and inventory volumes in the market have been at low levels due to the limitations on production within the scope of environmental measures. This has also positively impacted domestic steel section prices in the spot market. As for the coming week, it is believed that steel section prices may continue their uptrend but margins may be lower.

$1 = RMB 6.88