Chinese domestic steel section prices fluctuate slightly

Chinese domestic steel section prices have indicated small fluctuations during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $655/mt (RMB 4,500/mt). The same product is sold at $635/mt (RMB 4,360/mt) in the Tangshan market and at $700/mt (RMB 4,810/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $639/mt (RMB 4,390/mt) in the Shanghai market, at $638/mt (RMB 4,380/mt) in Tangshan and at $719/mt (RMB 4,940/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 $642/mt (RMB 4,410/mt), $645/mt (RMB 4,430/mt) and $703/mt (RMB 4,830/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 during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 4,020/mt ($585/mt), the price of 165 x 225 mm rectangular billet stands at RMB 4,040/mt ($588/mt), while the price of 20MnSi billet is at around RMB 4,140/mt ($603/mt). The prices are all ex-mill, including 16 percent VAT.

Due to rumors regarding an easing of environmental protection measures, domestic steel section prices stopped moving upwards and began to decrease in the middle of last week. However, a government clarification that the rumors in question were just speculative caused the steel section market to rebound slightly towards the end of the week. Overall trading activity has been at low levels given the fluctuation of prices and also as downstream buyers have mostly maintained a wait-and-see stance. As for the week ahead, demand has not shown any significant improvement in this traditionally busy time of the year for sales, though support from low supply and inventory is still strong. It is thought that the domestic steel section market may indicate slight upward fluctuations in the coming week.

$1 = RMB 6.87