Chinese domestic steel section prices decline

As of August 5, Chinese domestic steel section prices have declined 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 $605/mt (RMB 4,260/mt). The same product is sold at $568/mt (RMB 4,000/mt) in the Tangshan market and at $629/mt (RMB 4,430/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $572/mt (RMB 4,030/mt) in the Shanghai market, at $555/mt (RMB 3,910/mt) in Tangshan and at $652/mt (RMB 4,590/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 $581/mt (RMB 4,090/mt), $570/mt (RMB 4,010/mt) and $641/mt (RMB 4,510/mt). The prices are all ex-mill, including 13 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 softened in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,560/mt ($506/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,580/mt ($509/mt), while the price of 20MnSi billet is at around RMB 3,660/mt ($520/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the Chinese steel section market has been at low levels in the past week. Raw material futures prices in China switched from an upward to a downward trend during the past week, contributing to the downward movement of steel section prices. Demand has remained weak due to the offseason and due to the production restrictions implemented within the scope of environmental measures. As for the week ahead, it is believed that domestic steel section prices may continue to move on a soft trend.

$1 = RMB 7.04