Chinese domestic steel section prices mainly increase

Chinese domestic steel section prices have mostly followed an upward trend during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $622/mt (RMB 4,280/mt). The same product is sold at $577/mt (RMB 3,970/mt) in the Tangshan market and at $635/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 $576/mt (RMB 3,960/mt) in the Shanghai market, at $571/mt (RMB 3,930/mt) in Tangshan and at $658/mt (RMB 4,530/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 $587/mt (RMB 4,040/mt), $578/mt (RMB 3,980/mt) and $647/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 increased during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,580/mt ($520/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,600/mt ($523/mt), while the price of 20MnSi billet is at around RMB 3,680/mt ($535/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the past week in the local Chinese steel section market has been at low levels, while prices have mostly edged upwards supported by increases in billet prices and raw material futures prices. As for the week ahead, considering the strong performance of the raw material futures market, it is believed that domestic steel section prices may rise further, though the increase margins are expected to be limited by the weakness of demand.

$1 = RMB 6.88