Chinese domestic steel section prices soften slightly

Chinese domestic steel section prices have mostly indicated a slight softening during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $630/mt (RMB 4,320/mt). The same product is sold at $555/mt (RMB 3,810/mt) in the Tangshan market and at $640/mt (RMB 4,390/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $602/mt (RMB 4,130/mt) in the Shanghai market, at $552/mt (RMB 3,790/mt) in Tangshan and at $666/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 $580/mt (RMB 3,980/mt), $565/mt (RMB 3,880/mt) and $656/mt (RMB 4,500/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 slight downticks during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,360/mt ($490/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,380/mt ($492/mt), while the price of 20MnSi billet is at around RMB 3,460/mt ($504/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity has been at normal levels in the past week in the local Chinese section steel market where prices have softened slightly due to the downticks in billet prices and as traders have mostly been willing to reduce their steel section prices in order to close more deals. Some producers have been carrying out maintenance works, which may provide support for market prices. As for the week ahead, traders are now more eager to reduce their inventories and bring in cash since the Chinese New Year holiday is approaching. As a result, it is believed that domestic steel section prices may decline slightly.

$1 = RMB 6.86