Chinese domestic steel section prices indicate minor fluctuations

Chinese domestic steel section prices have fluctuated slightly 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 4,330/mt). The same product is sold at $582/mt (RMB 3,930/mt) in the Tangshan market and at $649/mt (RMB 4,380/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $600/mt (RMB 4,050/mt) in the Shanghai market, at $578/mt (RMB 3,900/mt) in Tangshan and at $674/mt (RMB 4,550/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 $599/mt (RMB 4,040/mt), $584/mt (RMB 3,940/mt) and $659/mt (RMB 4,450/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 showed a slightly upward trend during past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,600/mt ($533/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,620/mt ($536/mt), while the price of 20MnSi billet is at around RMB 3,700/mt ($548/mt). The prices are all ex-mill, including 13 percent VAT.

Local Chinese steel section steel prices have fluctuated by small margins during the past week. Overall trading activity was not as good as expected before the Labor Day holiday, though support from low market inventories and from upstream billet prices remained strong. Traders have mostly focused on sales after the holiday and market inventory has slightly increased, resulting in minor downticks in prices. As for the week ahead, it is believed that local steel section prices may soften slightly.

$1 = RMB 6.71