Chinese domestic steel section prices indicate strong increases

The Chinese domestic steel section market has indicated a strong upward trend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $612/mt (RMB 4,110/mt). The same product is sold at $618/mt (RMB 4,150/mt) in the Tangshan market and at $656/mt (RMB 4,410/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $598/mt (RMB 4,020/mt) in the Shanghai market, at $610/mt (RMB 4,100/mt) in Tangshan and at $658/mt (RMB 4,420/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 $592/mt (RMB 3,980/mt), $612/mt (RMB 4,110/mt) and $664/mt (RMB 4,460/mt). The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese domestic market have also moved up strongly in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,750/mt ($558/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,770/mt ($561/mt), while the price of 20MnSi billet is at around RMB 3,850/mt ($573/mt). The prices are all ex-mill, including 17 percent VAT.

Increases in billet prices and steel futures price in China have contributed to the upward movement of local Chinese steel section prices in the past week. Overall trading activity for steel sections has remained weak amid the sharp increases in prices, with downstream buyers mostly maintaining a wait-and-see stance. As for the coming week, it is believed that domestic steel section prices are unlikely to indicate further strong increases but may just fluctuate slightly amid a lack of support from the demand side.

$1 = RMB 6.72