Chinese domestic steel section prices begin to soften

Chinese domestic steel section prices have mostly declined slightly compared to one week ago.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $669/mt (RMB 4,260/mt). The same product is sold at $623/mt (RMB 3,970/mt) in the Tangshan market and at $714/mt (RMB 4,550/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $664/mt (RMB 4,230/mt) in the Shanghai market, at $625/mt (RMB 3,980/mt) in Tangshan and at $738/mt (RMB 4,700/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 $664/mt (RMB 4,230/mt), $642/mt (RMB 4,090/mt) and $721/mt (RMB 4,590/mt). The prices are all ex-mill, including 16 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

As for billet, prices of the semi-finished steel product in the Chinese domestic market are slightly higher compared to one week ago, having first increased after the Labor Day holiday, while softening at the end of the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,610/mt ($567/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,630/mt ($570/mt), while the price of 20MnSi billet is at around RMB 3,730/mt ($586/mt). The prices are all ex-mill, including 16 percent VAT.

The Chinese domestic steel section market first moved up during the past week, but later declined, influenced by the fluctuation in billet prices, while high inventory levels and the wait-and-see stance among buyers have also contributed to the recent decline in prices. Supply volumes have increased lately, while raw material prices are mostly characterized by a weak tendency. As for the coming week, it is thought that the domestic steel section market will fluctuate on a soft trend.

$1 = RMB 6.37