During the week ending December 7, prices of section steel in the Chinese domestic market have climbed up slightly, though failing to attract purchases of large tonnages by end-users. As of December 7, 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 |
4,523 |
+53 |
680 |
+8 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,580 |
+57 |
689 |
+9 |
I-beam |
250 mm x 118 mm x 10 m |
Q235 |
4,633 |
+33 |
697 |
+5 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,550/mt ($684/mt). The same product is sold at RMB 4,420/mt ($665/mt) in the Tangshan market and at RMB 4,600/mt ($692/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,500/mt ($677/mt) in the Shanghai market, at RMB 4,420/mt ($665/mt) in Tangshan and at RMB 4,650/mt ($699/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 4,520/mt ($680/mt), RMB 4,700/mt ($707/mt) and RMB 4,650/mt ($699/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 risen to RMB 4,170/mt ($627/mt), while the price of low alloy billet has increased to RMB 4,290/mt ($645/mt), both including 17 percent VAT. The prices have registered an increase of RMB 90/mt ($14/mt) from the previous week.
Billet prices in China have at present reached their highest levels for the current year. On the back of the rising trends seen in the iron ore and coke markets as well as the increasing transaction volume for billet, billet prices in China are expected to continue to rise at least through January 2011. Currently, supplies are reported to be tight in the domestic billet market.
While most regions have posted increases in section steel prices, some sporadic decreases have also been observed in certain regions. Triggered by the uptrend in raw material costs, most domestic section steel producers have this week raised their ex-mill prices, especially in the northern region. Given the rising momentum, section steel prices in China are expected to maintain their rising trend in the coming period.