Chinese domestic steel section prices mostly follow a downtrend

Chinese domestic steel section price mostly showed a downward 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 $641/mt (RMB 4,190/mt). The same product is sold at $606/mt (RMB 3,960/mt) in the Tangshan market and at $687/mt (RMB 4,490/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $636/mt (RMB 4,160/mt) in the Shanghai market, at $607/mt (RMB 3,970/mt) in Tangshan and at $716/mt (RMB 4,680/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 $648/mt (RMB 4,240/mt), $622/mt (RMB 4,070/mt) and $705/mt (RMB 4,610/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 showed a downward trend during past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,600/mt ($550/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,620/mt ($554/mt), while the price of 20MnSi billet is at around RMB 3,720/mt ($569/mt). The prices are all ex-mill, including 16 percent VAT.

In the past week, Chinese domestic steel section prices followed a mostly downward trend and overall trade activity was still slack. Weak demand resulted in a downtrend of steel section prices, while billet prices also moved down in line with the raw material future market prices in the given week. Traders are mostly willing to reduce the price in order to conclude more deals, however section producers are not willing to reduce their list price as the support from cost is still strong. It is expected that the Chinese domestic steel section prices may follow a downtrend with fluctuations in the coming week, amid weak demand and downtrend in billet prices.

$1 = RMB 6.54