Chinese domestic steel section prices rebound

In the past week, Chinese domestic steel section prices first declined but later rebounded.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $633/mt (RMB 4,360/mt). The same product is sold at $556/mt (RMB 3,830/mt) in the Tangshan market and at $639/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 $610/mt (RMB 4,200/mt) in the Shanghai market, at $553/mt (RMB 3,810/mt) in Tangshan and at $663/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 $601/mt (RMB 4,140/mt), $553/mt (RMB 3,810/mt) and $655/mt (RMB 4,510/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 sharply rebounding trend during past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,330/mt ($483/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,350/mt ($486/mt), while the price of 20MnSi billet is at around RMB 3,430/mt ($498/mt). The prices are all ex-mill, including 16 percent VAT.

In the past week, overall trading activity has been at low levels in the local Chinese section steel market, where prices first moved down at the start of the week amid declining rebar and billet prices. However, the meeting between the Chinese and US presidents on Saturday has succeeded in putting China-US relations back on the right path, thereby boosting confidence in the Chinese steel market. In China, billet and rebar spot prices as well as futures market prices increased sharply on Monday, December 3, while steel section prices have also rebounded, though demand has remained weak. It is believed that domestic steel section prices will fluctuate on an upward trend during the coming week. 

$1 = RMB 6.89