Chinese domestic steel section prices move down slightly

Chinese domestic steel section prices have declined 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 $622/mt (RMB 4,280/mt). The same product is sold at $579/mt (RMB 3,980/mt) in the Tangshan market and at $642/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 $578/mt (RMB 3,980/mt) in the Shanghai market, at $578/mt (RMB 3,980/mt) in Tangshan and at $666/mt (RMB 4,580/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 $590/mt (RMB 4,060/mt), $589/mt (RMB 4,050/mt) and $654/mt (RMB 4,500/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 indicated minor declines in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,620/mt ($526/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,640/mt ($529/mt), while the price of 20MnSi billet is at around RMB 3,720/mt ($541/mt). The prices are all ex-mill, including 13 percent VAT.

In the past week, local Chinese steel section prices first increased but then declined and are now slightly down on week-on-week basis. Overall trading activity has been at normal levels. After a sharp upward trend due to positive macroeconomic signals and due to environmental measures, most traders have chosen to reduce their prices and try to attract more deals. However, upstream billet prices are still on the high side, while producers’ quoted prices also provide strong support for prices in the spot market. As for the week ahead, it is believed that domestic steel section prices may move down by a small margin.

$1 = RMB 6.88