Chinese domestic steel section prices decrease significantly

Chinese domestic steel section prices have indicated significant decreases during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $627/mt (RMB 4,350/mt). The same product is sold at $523/mt (RMB 3,630/mt) in the Tangshan market and at $643/mt (RMB 4,460/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $598/mt (RMB 4,150/mt) in the Shanghai market, at $523/mt (RMB 3,630/mt) in Tangshan and at $663/mt (RMB 4,600/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 $597/mt (RMB 4,140/mt), $532/mt (RMB 3,690/mt) and $654/mt (RMB 4,540/mt). The prices are all ex-mill, including 16 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 sharply in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,120/mt ($450/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,140/mt ($452/mt), while the price of 20MnSi billet is at around RMB 3,220/mt ($464/mt). The prices are all ex-mill, including 16 percent VAT.

In the week in question, trading activity has been at low levels in the local Chinese steel section market where prices have been impacted by the weakness of demand and the decreases in prices of billet and other raw materials. As for the week ahead, downstream demand will likely remain slack due to the off-season, while prices of upstream materials are expected to remain soft, and so it is believed that domestic steel section prices may continue their downward trend.

$1 = RMB 6.94