Chinese section steel prices have continued to move up over the past week, though at a slower speed as compared to the previous week. Looking at the current situation, the ex-mill prices of most section steel producers have increased in late December, and so the domestic section steel market is unlikely to register a downward trend in the coming period. In addition, the overall uptrend in steel billet prices and in other steel prices also provide support for the section market. As of December 21, 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 |
+47 |
695 |
+7 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,673 |
+50 |
703 |
+8 |
I-beam |
250 mm x 118 mm x 10 m |
Q235 |
4,717 |
+34 |
709 |
+5 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,660/mt ($701/mt). The same product is sold at RMB 4,500/mt ($677/mt) in the Tangshan market and at RMB 4,700/mt ($707/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 ($705/mt) in the Shanghai market, at RMB 4,530/mt ($681/mt) in Tangshan and at RMB 4,800/mt ($722/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 4,650/mt ($699/mt), RMB 4,750/mt ($714/mt) and RMB 4,750/mt ($714/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 4,230/mt ($636/mt), while the price of rectangular billet is standing at RMB 4,260/mt ($641/mt) and the price of low alloy billet has increased to RMB 4,350/mt ($654/mt), all including 17 percent VAT. The prices have registered slight increases from the previous week. However, not many transactions have been concluded at the abovementioned levels.
Propelled by the increases in iron ore and coke prices, domestic steel billet prices have moved up again over the past week. In addition, improved demand in the downstream market has also positively influenced domestic steel billet prices.
Over the past week, the ex-mill prices of section steel products offered by domestic section producers in Hebei Province have increased by RMB 20-50/mt ($3-8/mt). Furthermore, Anhui Province-based Chinese steelmaker Maanshan Iron and Steel has raised its angle and channel prices by RMB 160/mt ($24/mt). These increased ex-mill prices have helped to push up the spot market prices for section steel.