Chinese domestic steel section prices soften slightly

Chinese domestic steel section prices have mostly softened slightly during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $652/mt (RMB 4,520/mt). The same product is sold at $623/mt (RMB 4,320/mt) in the Tangshan market and at $693/mt (RMB 4,800/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $626/mt (RMB 4,340/mt) in the Shanghai market, at $620/mt (RMB 4,300/mt) in Tangshan and at $709/mt (RMB 4,910/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 $625/mt (RMB 4,330/mt), $631/mt (RMB 4,370/mt) and $700/mt (RMB 4,850/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 during the past seven days. Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,910/mt ($564/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,930/mt ($567/mt), while the price of 20MnSi billet is at around RMB 4,010/mt ($579/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity in the Chinese domestic steel section market has been at low levels in the past week, while the slight softening in most prices has been due to the decreases seen rebar futures prices and in billet prices. However, inventories in the steel section market are still at low levels, and so decreases in prices have been relatively small. As for the week ahead, supply volumes may remain on the low side due to environmental protection measures. However, demand has remained weak and so it is thought that domestic steel section prices may continue to follow a slightly soft trend. 

$1 = RMB 6.93