Chinese section steel prices post overall drop

China's domestic prices of section steel have seen an overall drop during the past week; some products in Benjing have remained stable, while the section steel markets in Shanghai and Guangzhou have followed a softening trend. Currently, market quotations show some variation, while shipments of goods are on the low side.

Currently, the prices of 50 mm x 50 mm x 5 m angles in Shanghai, Tangshan and Guangzhou are standing at RMB 4,390 /mt ($644/mt), RMB 4,250/mt ($623/mt) and RMB 4,330/mt ($635/mt) respectively. Prices of 160 mm x 65 mm x 8.5 m channel steel in the regions mentioned above are RMB 4,400/mt ($645/mt), RMB 4,220/mt ($619/mt), and RMB 4,530/mt ($664/mt) respectively. As regards 250 mm x 118 mm x 10 m I-beams, prices are at levels of RMB 4,430/mt ($650/mt), RMB 4,620/mt ($677/mt) and RMB 4,410/mt ($647/mt) respectively. All the above prices include 17 percent VAT.

On the billet side, at present, the mainstream prices of 150 mm common carbon billet are RMB 3,960/mt ($581/mt), prices of 165 mm common carbon billet are at RMB 3,990/mt ($572/mt) , and prices of low alloy billet stand at RMB 4,080/mt ($598/mt), all with tax included. Present section steel market transactions are slack and section steel prices are fluctuating in line with billet prices.

Section steel producers which previously stopped their production for maintenance have recommenced operations. Because of low shipments, inventories at the mills have increased, and small sized section steel mills are thus expected to slow down their production. In addition, Maanshan Iron and Steel's prices for May are much more stable than in late April, while no rising trend is observed in prices of other domestic steel mills. Traders expect that ex-factory prices will not be increased in the short term.