Chinese domestic steel section prices indicate minor fluctuations

Chinese domestic steel section prices have indicated minor 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 $641/mt (RMB 4,340/mt). The same product is sold at $563/mt (RMB 3,810/mt) in the Tangshan market and at $645/mt (RMB 4,370/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $606/mt (RMB 4,100/mt) in the Shanghai market, at $558/mt (RMB 3,780/mt) in Tangshan and at $675/mt (RMB 4,570/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 $583/mt (RMB 3,950/mt), $567/mt (RMB 3,840/mt) and $665/mt (RMB 4,500/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 rebounded slightly in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,410/mt ($504/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,430/mt ($507/mt), while the price of 20MnSi billet is at around RMB 3,510/mt ($518/mt). The prices are all ex-mill, including 16 percent VAT.

Trading activity has remained at low levels in the past week in the Chinese domestic steel section market where some prices have edged up slightly due to the increase in billet prices, whereas other prices have softened by small margins due to the slackness of demand. Supplies volumes are at low levels in some parts of the country due to production restrictions, and this provides support for prices. As for the week ahead, trading activity may improve due to replenishment of winter stocks, while it is believed that domestic steel section prices may continue to indicate small fluctuations, with some traders possibly reducing their prices in order to close more deals.

$1 = RMB 6.77