Demand expected to remain weak in local Chinese steel section market

During the past week, the Chinese domestic steel section market has mostly moved on a stable trend, though with slight decreases seen in prices of certain products.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $351/mt. The same product is sold at $304/mt in the Tangshan market and at $384/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $342/mt in the Shanghai market, at $299/mt in Tangshan and at $386/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 $351/mt, $309/mt and $400/mt. The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.
 
As for billet, prices in the Chinese domestic market have softened slightly in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,670/mt ($263/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,700/mt ($268/mt), while the price of 20MnSi billet is at around RMB 1,790/mt ($282/mt). The prices are all ex-mill, including 17 percent VAT.

Overall trading activity in the local Chinese steel section market has remained slack during the past week. The minor decreases in billet prices and the lower price quotations issued by domestic steel section producers mean that support for local steel section market prices in China has diminished. As for the coming week, it is thought that domestic steel section prices will move on a declining trend as demand is expected to remain weak.

The prices are on theoretical weight basis, all prices include 17 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.35