Chinese domestic steel section prices start to rebound slightly

Chinese domestic steel section prices first softened but then rebounded during the past week, with prices now slightly higher compared to one week ago.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $649/mt (RMB 4,340/mt). The same product is sold at $578/mt (RMB 3,870/mt) in the Tangshan market and at $653/mt (RMB 4,370/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $616/mt (RMB 4,120/mt) in the Shanghai market, at $571/mt (RMB 3,820/mt) in Tangshan and at $680/mt (RMB 4,550/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 $596/mt (RMB 3,990/mt), $580/mt (RMB 3,880/mt) and $670/mt (RMB 4,480/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 a small increase during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,450/mt ($516/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,470/mt ($519/mt), while the price of 20MnSi billet is at around RMB 3,550/mt ($531/mt). The prices are all ex-mill, including 16 percent VAT.

Overall trading activity in the local Chinese section steel market has improved a little but is still considered to be at low levels. With rebar future prices and billet prices starting to rebound in the middle of last week, steel section market prices halted their soft movement and switched to an upward trend. Meanwhile, downstream operators are mostly back at work after the recent holiday and demand has started to increase, which also provides support for steel section market prices. Lately, market inventories have risen slightly, which may slow the upward movement of prices. As for the week ahead, it is believed that domestic steel section prices may rise slightly with the support of improving demand.  

$1 = RMB 6.69