Chinese domestic steel section prices soften slightly

Chinese domestic steel section prices have fluctuated on a slightly soft trend during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $644/mt (RMB 4,320/mt). The same product is sold at $592/mt (RMB 3,970/mt) in the Tangshan market and at $662/mt (RMB 4,440/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $607/mt (RMB 4,070/mt) in the Shanghai market, at $577/mt (RMB 3,870/mt) in Tangshan and at $683/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 $598/mt (RMB 4,010/mt), $581/mt (RMB 3,900/mt) and $671/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 are unchanged week on week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,450/mt ($514/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,470/mt ($517/mt), while the price of 20MnSi billet is at around RMB 3,550/mt ($529/mt). The prices are all ex-mill, including 13 percent VAT.

Local Chinese steel section steel prices have fluctuated slightly in the past seven days and are down by a small margin on week-on-week basis due to the weakness of demand and the minor reductions seen in rebar futures prices in mid-week. Overall trading activity has been at low levels ahead of the implementation of new VAT rates on April 1. Trading activity may show a significant increase during the week ahead. Accordingly, it is believed that domestic steel section prices may indicate some minor upticks despite the reduction of the VAT rate.

$1 = RMB 6.71