During the week ending June 22, steel section prices have in general continued to trend down in the Chinese domestic market, apart from some minor upticks in angle prices seen in the Shanghai market. As of June 22, average section prices in the main Chinese cities are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Angle |
50 mm x 50 mm x 5 m |
Q235 |
4,010 |
-18 |
591 |
-3 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,052 |
-28 |
597 |
-4 |
I beam |
250 mm x 118 mm x 10 m |
Q235 |
4,134 |
-38 |
609 |
-6 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m angle is now at RMB 4,050/mt ($596/mt). The same product is sold at RMB 3,950/mt ($582/mt) in the Tangshan market, while it is sold at RMB 4,150/mt ($611/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m channel stand at RMB 4,050/mt ($596/mt) in the Shanghai market, at RMB 3,950/mt ($582/mt) in Tangshan and at RMB 4,310/mt ($635/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 RMB 4,130/mt ($608/mt), RMB 4,140/mt ($610/mt) and RMB 4,200/mt ($619/mt). The prices are all ex-mill, including 17 percent VAT.
In the Chinese market, the transaction situation has been sluggish on the whole, while some traders eager to sell off materials have concluded deals at negotiated prices. Nevertheless, most traders are not willing to lower their offers. Currently, the Chinese section market is characterized by a moderate downtrend, with less possibility now existing for big decreases as product prices are already in the vicinity of production costs.
In the context of the weak performance of the domestic market, some small section mills have continued to suspend production. Most domestic producers are focusing on controlling their outputs in order to keep inventories at reasonable levels.
In the Tangshan market, common carbon billets of 150 mm x 150 mm size are priced at RMB 3,650/mt ($538/mt), while prices of low alloyed billets are at RMB 3,680/mt ($542/mt). Both prices include 17 percent VAT.
On June 21, the exchange of China's RMB against the US dollar reached 6.79, marking the strongest level of the RMB since 2005. This is expected to exert a negative influence on the Chinese steel export market in the coming period.
(US$1 = RMB 6.79)