Chinese steel section prices slide down due to slow demand

During the week ending February 22, steel section prices in the Chinese domestic market have dropped down in the context of slow activity and strong competition among traders for orders. As of February 22, sale prices of steel sections in the domestic market are as follows:

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,930/mt ($750/mt). The same product is sold at RMB 4,600/mt ($700/mt) in the Tangshan market and at RMB 4,800/mt ($731/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at RMB 4,940/mt ($752/mt) in the Shanghai market, at RMB 4,680/mt ($712/mt) in Tangshan and at RMB 4,900/mt ($746/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 4,950/mt ($753/mt), RMB 4,850/mt ($738/mt) and RMB 4,900/mt ($746/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 increased to RMB 4,290/mt ($653/mt), while the 165 mm x 225 mm size is now priced at RMB 4,320/mt ($657/mt), including 17 percent VAT. Last weekend, billet prices switched from a downtrend to an uptrend. Over the past week, prices of billet have decreased by a total of RMB 20/mt ($3/mt).

During the week under review, market activities remained slow as traders were acting cautiously. In the southern region of China, local section producers announced a decrease of RMB 50-100/mt ($8-15/mt) in their price lists due to low demand. In northern China, local section sales prices are not expected to recover until end-users start to make purchases. For the coming week, it is generally thought that a stable trend will prevail in the Chinese steel section market.