Chinese domestic steel section prices mostly increase slightly

Chinese domestic steel section prices have mostly rebounded slightly compared to one week ago.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $681/mt (RMB 4,310/mt). The same product is sold at $651/mt (RMB 4,120/mt) in the Tangshan market and at $725/mt (RMB 4,590/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $675/mt (RMB 4,270/mt) in the Shanghai market, at $652/mt (RMB 4,130/mt) in Tangshan and at $741/mt (RMB 4,690/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 $668/mt (RMB 4,230/mt), $660/mt (RMB 4,180/mt) and $730/mt (RMB 4,620/mt). The prices are all ex-mill, including 17 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 softened slightly on week-on-week basis. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,600/mt ($569/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,620/mt ($572/mt), while the price of 20MnSi billet is at around RMB 3,720/mt ($588/mt). The prices are all ex-mill, including 17 percent VAT.

Overall trading activity in the local Chinese steel section market has been improving and is now at good levels. Market inventories have declined slightly amid better demand. During the past week, domestic steel section prices had first declined due to the decreases in billet prices, but from the middle of the week steel section prices rebounded due to increases in rebar future prices and billet prices and also due to announcements of production restrictions in certain areas. As for the coming week, it is believed that domestic steel section prices may indicate a further slight increase.  

$1 = RMB 6.33