Chinese section market trends up slightly, transactions nearly dry up

During the week ending February 1, the Chinese section steel market has been stagnant in terms of activity due to the impending Spring Festival holiday. At the same time, section steel demand has been extremely weak, with buying activity in the market practically drying up. Most traders are expecting to see prices increase further in the post-holiday period. As of February 1, the average section steel sales prices in the main regions of China are as follows:

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,830/mt ($734/mt). The same product is sold at RMB 4,670/mt ($710/mt) in the Tangshan market and at RMB 4,800/mt ($729/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,880/mt ($742/mt) in the Shanghai market, at RMB 4,650/mt ($707/mt) in Tangshan and at RMB 4,900/mt ($745/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 4,860/mt ($739/mt), RMB 4,870/mt ($740/mt) and RMB 4,900/mt ($745/mt). The prices are all ex-mill, including 17 percent VAT.

Steel billet prices continue to decrease in Tangshan

In the Tangshan market, the price of common carbon billets of 150 mm x 150 mm size has dropped by RMB 80/mt ($12/mt) to RMB 4,310/mt ($655/mt), including 17 percent VAT. Steel billet prices in the Chinese market have been declining recently.

In the past week, market inventories have decreased slightly with shortages of some specifications observed, in a context of scarce new arrivals. Thus, traders are expecting further increases in the post-holiday market. Meanwhile, few transactions have been concluded by end-users in the week under review.