Following previous big fluctuations, the Chinese section steel market has not seen any significant changes in prices in the past week. However, market activity has been decreasing since the previous increases observed in the market, while prices now only receive support from the rising costs of raw materials. As of January 4, the average section steel sales prices in the main regions of China 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 |
4,620 |
0 |
698 |
0 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,670 |
+7 |
705 |
+1 |
I beam |
250 mm x 118 mm x 10 m |
Q235 |
4,720 |
-13 |
713 |
-2 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,680/mt ($707/mt). The same product is sold at RMB 4,480/mt ($677/mt) in the Tangshan market and at RMB 4,700/mt ($710/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,690/mt ($708/mt) in the Shanghai market, at RMB 4,520/mt ($683/mt) in Tangshan and at RMB 4,800/mt ($725/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 4,700/mt ($710/mt), RMB 4,710/mt ($711/mt) and RMB 4,750/mt ($718/mt). The prices are all ex-mill, including 17 percent VAT.
In the Tangshan market, the price of common carbon billets of 150 mm x 150 mm size has dropped to RMB 4,180/mt ($631/mt), while the price of low alloy billet has fallen to RMB 4,300/mt ($650/mt), both including 17 percent VAT.
Due to the Chinese central bank's interest rate hikes and low demand for semi-finished steel products, during the week in question semi-finished steel prices have seen an overall decline of RMB 150/mt ($23/mt) from the peak levels of the previous week. Coming up to last weekend, however, market demand for section steel and steel strips turned around somewhat, triggering a rebound in the semi-finished market. The strong rising trend seen in the iron ore and coke markets has also provided support for semi-finished prices.
Most mills have not made any adjustments in their offers for section steel. Despite relatively quiet demand, China's section steel market is expected to maintain a relatively stable trend for a while, on the back of strong raw material prices.