Chinese domestic steel section market starts to rebound

As of April 2, Chinese domestic steel section prices have increased on week-on-week basis.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $688/mt (RMB 4,320/mt). The same product is sold at $651/mt (RMB 4,090/mt) in the Tangshan market and at $726/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 $683/mt (RMB 4,290/mt) in the Shanghai market, at $639/mt (RMB 4,010/mt) in Tangshan and at $747/mt (RMB 4,690/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 $678/mt (RMB 4,260/mt), $646/mt (RMB 4,060/mt) and $729/mt (RMB 4,580/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 of the semi-finished steel product in the Chinese domestic market have rebounded in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,460/mt ($551/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,480/mt ($554/mt), while the price of 20MnSi billet is at around RMB 3,580/mt ($570/mt). The prices are all ex-mill, including 17 percent VAT.

During the past week, prices in the Chinese steel section market first declined but then started to rebound amid increases in rebar futures prices and billet prices as of the middle of the week. With previous price decreases having been on the large side, traders and producers have been seeking to increase their steel section prices to what they consider are normal levels. Meanwhile, producers received many orders when prices were at low levels, while trading activity in the overall market started to increase further when steel section prices began to rebound. It is thought that domestic steel section prices may increase in the coming week, though increase margins may not be very large as many traders are focused on concluding sales.

$1 = RMB 6.28