Chinese domestic steel section prices mostly show slight decline

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 $637/mt (RMB 4,330/mt). The same product is sold at $559/mt (RMB 3,800/mt) in the Tangshan market and at $643/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 $600/mt (RMB 4,080/mt) in the Shanghai market, at $553/mt (RMB 3,760/mt) in Tangshan and at $672/mt (RMB 4,570/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 $579/mt (RMB 3,940/mt), $565/mt (RMB 3,840/mt) and $662/mt (RMB 4,500/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 have declined slightly during the past seven days. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,400/mt ($500/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,420/mt ($503/mt), while the price of 20MnSi billet is at around RMB 3,500/mt ($515/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity has been at normal levels in the past week in the local Chinese steel section market where prices have softened slightly against the back drop of decreases in billet prices, but especially because traders have sought to close more deals. As for the week ahead, traders may try to sell as much as possible as downstream buyers will soon leave the market ahead of the holiday. As a result, prices may continue to soften though producers’ unchanged prices will provide some support. To sum up, it is believed that Chinese domestic steel section prices may continue to soften slightly in the coming week.

$1 = RMB 6.80