Chinese domestic steel section market prices still follow an upward trend

Chinese domestic steel section prices have continued to move up during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $649/mt (RMB 4,450/mt). The same product is sold at $650/mt (RMB 4,460/mt) in the Tangshan market and at $701/mt (RMB 4,810/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $634/mt (RMB 4,350/mt) in the Shanghai market, at $650/mt (RMB 4,460/mt) in Tangshan and at $723/mt (RMB 4,960/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 $638/mt (RMB 4,380/mt), $640/mt (RMB 4,390/mt) and $714/mt (RMB 4,900/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 their uptrend during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 4,100/mt ($598/mt), the price of 165 x 225 mm rectangular billet stands at RMB 4,120/mt ($600/mt), while the price of 20MnSi billet is at around RMB 4,220/mt ($615/mt). The prices are all ex-mill, including 16 percent VAT.

During the past seven days, domestic steel section prices in China have increased further. The overall trading activity in the market has remained at normal levels. Upstream billet prices have continued to follow a strong uptrend in the given period, influenced by rebar futures prices which is the main reason of the ongoing upward movement recorded in domestic steel section prices in China. The supply volume and market inventory level have also been influenced by environmental protection requirements, and so have remained at low levels which provides support to domestic steel section prices. As for next week, considering that domestic steel section prices have been characterized by an uptrend for some time now, traders are cautious and unwilling to build up inventories. Therefore, experts believe that domestic steel section prices in China may continue their upward movement in the coming week due to the strong support received from the cost side but the increase margin may get smaller as compared to the week ending August 20.

$1 = RMB 6.86