Chinese domestic steel section prices mostly indicate slight softening

Chinese domestic steel section prices have mostly indicated a slight softening during the past week. 

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $650/mt (RMB 4,360/mt). The same product is sold at $584/mt (RMB 3,920/mt) in the Tangshan market and at $656/mt (RMB 4,400/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $607/mt (RMB 4,070/mt) in the Shanghai market, at $580/mt (RMB 3,890/mt) in Tangshan and at $678/mt (RMB 4,550/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 $602/mt (RMB 4,040/mt), $584/mt (RMB 3,920/mt) and $663/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 declined slightly during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,570/mt ($533/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,590/mt ($536/mt), while the price of 20MnSi billet is at around RMB 3,670/mt ($547/mt). The prices are all ex-mill, including 13 percent VAT.

In the past week, overall trading activity has been at normal levels in the local Chinese steel section market where most prices have moved down slightly against the backdrop of minor downticks in upstream billet prices. Futures prices in China have softened, while steel section traders are mostly focusing on sales as the end of the month draws closer. At the same time, demand has showed some signs of weakening. As for the week ahead, it is believed that steel section prices in China may indicate a further slight softening.

$1 = RMB 6.71