Chinese section steel market trends up slightly

During the week ending November 30, section steel prices have posted a slight uptrend in the Chinese domestic market. While angle prices have remained neutral compared with the previous week, domestic channel and I-beam prices have increased by different margins. However, not many deals have been heard. As of November 30, 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 4,500/mt ($678/mt). The same product is sold at RMB 4,360/mt ($657/mt) in the Tangshan market and at RMB 4,680/mt ($705/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 ($678/mt) in the Shanghai market, at RMB 4,420/mt ($666/mt) in Tangshan and at RMB 4,650/mt ($700/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 ($681/mt), RMB 4,680/mt ($705/mt) and RMB 4,600/mt ($693/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 4,080/mt ($612/mt), while the price of low alloy billet has increased to RMB 4,200/mt ($630/mt), both including 17 percent VAT. The prices have registered an increase of RMB 70-90/mt ($11-14/mt) from the previous week.

Nevertheless, the finished steel market has not been strongly influenced by the uptrend in the billet market. Market players are now adopting a waiting strategy, resulting in lackluster activity.

With the traditionally weak season for business approaching, market demand for section steel is expected to dwindle further in the coming period.