Chinese domestic steel section market showed a fluctuating with upward trend

During the past week, domestic steel section prices in China have firstly moved down and then increased.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $669/mt (RMB 4,410/mt). The same product is sold at $634/mt (RMB 4,180/mt) in the Tangshan market and at $692/mt (RMB 4,560/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $654/mt (RMB 4,310/mt) in the Shanghai market, at $636/mt (RMB 4,190/mt) in Tangshan and at $700/mt (RMB 4,610/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 $634/mt (RMB 4,180/mt), $646/mt (RMB 4,260/mt) and $703/mt (RMB 4,630/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, Chinese domestic market prices have slightly decreased over the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,620/mt ($549/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,640/mt ($552/mt), while the price of 20MnSi billet is at around RMB 3,720/mt ($564/mt). The prices are all ex-mill, including 17 percent VAT.

During the past week, the initial downward movement of domestic steel section prices has given way to an uptrend in the middle of the week, with prices closing the week at higher levels compared to last week. Overall trading volume in the local Chinese steel section market has been at normal levels in this period. With the influence of the falls seen in billet prices as well as the futures market prices, domestic steel section quotation in China followed a downward trend at the beginning of last week. But with rebar futures prices rebounding again in the middle of last week, steel section prices have also started to move up. Meanwhile, traders are mostly holding positive view as regards the future trend of the market. Due to reduced inventory levels and the production limitations in China, it is believed that domestic steel section prices in China may move up in the coming week.

$1 = RMB 6.59