Chinese domestic steel section prices soften

Chinese domestic steel section prices have decreased during the national holiday period.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $653/mt (RMB 4,500/mt). The same product is sold at $612/mt (RMB 4,220/mt) in the Tangshan market and at $689/mt (RMB 4,750/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $633/mt (RMB 4,360/mt) in the Shanghai market, at $614/mt (RMB 4,230/mt) in Tangshan and at $708/mt (RMB 4,880/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 $633/mt (RMB 4,360/mt), $623/mt (RMB 4,290/mt) and $695/mt (RMB 4,790/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 reduce trend during this period. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,850/mt ($559/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,870/mt ($562/mt), while the price of 20MnSi billet is at around RMB 3,970/mt ($576/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity has remained at low levels in the local Chinese steel section market which has moved down mainly due to the decreases seen in billet prices. As for the week ahead, since supply volumes remained at normal levels during the holiday and also given the softness of billet prices, domestic steel section prices may continue their downward trend.

$1 = RMB 6.89