Chinese domestic steel section market receives support from higher costs

Chinese domestic steel section prices have mostly indicated an upward trend during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $402/mt (RMB 2,720/mt). The same product is sold at $362/mt (RMB 2,450/mt) in the Tangshan market and at $428/mt (RMB 2,900/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $406/mt (RMB 2,750/mt) in the Shanghai market, at $377/mt (RMB 2,520/mt) in Tangshan and at $454/mt (RMB 3,070/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 $414/mt (RMB 2,800/mt), $374/mt (RMB 2,530/mt) and $489/mt (RMB 3,310/mt). The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.
 
As for billet, prices in the Chinese domestic market have indicated slight declines in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,200/mt ($325/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,230/mt ($330/mt), while the price of 20MnSi billet is at around RMB 2,320/mt ($343/mt). The prices are all ex-mill, including 17 percent VAT.

In the given week, coke futures prices at Dalian Commodity Exchange (DCE) have followed a rising trend, pushing up steelmakers' production costs and providing support for steel section prices. Demand for steel sections in China is at low-to-medium levels, having slackened compared to the previous week. As for the coming week, it is thought that domestic steel section prices may move sideways.

$1 = RMB 6.77