Chinese domestic steel section prices mostly indicate slight increases

Chinese domestic steel section prices have mostly fluctuated in an upward direction during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $625/mt (RMB 4,310/mt). The same product is sold at $544/mt (RMB 3,760/mt) in the Tangshan market and at $641/mt (RMB 4,420/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $593/mt (RMB 4,090/mt) in the Shanghai market, at $552/mt (RMB 3,810/mt) in Tangshan and at $665/mt (RMB 4,590/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 $583/mt (RMB 4,020/mt), $564/mt (RMB 3,890/mt) and $656/mt (RMB 4,530/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, Chinese domestic market prices have showed a slightly upward trend during past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,390/mt ($491/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,410/mt ($494/mt), while the price of 20MnSi billet is at around RMB 3,490/mt ($506/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity in the past week has been sluggish in the local Chinese steel section market, while the price trend has been supported by increases in billet prices. Downstream demand is still weak due to the off-season. On the other hand, however, inventories have been declining and are at low levels, and this provides support for steel section prices. As for the week ahead, it is believed that domestic steel section prices may fluctuate on a slight downtrend amid weak demand and the pressure exerted on traders due to tightness of funds as the year-end approaches. 

$1 = RMB 6.90