Chinese domestic steel section prices mostly unchanged

Chinese domestic steel section prices are mostly unchanged week on week, with just some slight fluctuations seen during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $649/mt (RMB 4,350/mt). The same product is sold at $578/mt (RMB 3,870/mt) in the Tangshan market and at $652/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 $615/mt (RMB 4,120/mt) in the Shanghai market, at $570/mt (RMB 3,820/mt) in Tangshan and at $679/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 $597/mt (RMB 4,000/mt), $579/mt (RMB 3,880/mt) and $669/mt (RMB 4,480/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 indicated an increase during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,510/mt ($524/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,530/mt ($527/mt), while the price of 20MnSi billet is at around RMB 3,610/mt ($539/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity in the local Chinese steel section market has improved and is now considered to be at normal levels, while prices are supported by the recent increases in billet prices and by the improvement in demand. Meanwhile, environmental protection measures may still influence production volumes of steel sections, which would also support market prices. However, high inventories held by downstream users have prevented demand from increasing at a faster rate. As for the week ahead, it is believed that domestic steel section prices may show fluctuate on a slight uptrend.

$1 = RMB 6.70