Demand on weak side in Chinese domestic steel section market

The Chinese domestic steel section market has seen a slight week-on-week decrease in prices in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $400/mt (RMB 2,670/mt). The same product is sold at $367/mt (RMB 2,450/mt) in the Tangshan market and at $420/mt (RMB 2,800/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $397/mt (RMB 2,650/mt) in the Shanghai market, at $367/mt (RMB 2,450/mt) in Tangshan and at $438/mt (RMB 2,920/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 $408/mt (RMB 2,720/mt), $376/mt (RMB 2,510/mt) and $477/mt (RMB 3,180/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 2,140/mt ($321/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,170/mt ($325/mt), while the price of 20MnSi billet is at around RMB 2,260/mt ($339/mt). The prices are all ex-mill, including 17 percent VAT.

The local Chinese steel section market has been characterized by fluctuations in prices in the past week, with prices first declining and then started to move back up, though prices are slightly down on week-on-week basis. Overall trading activity is still slack. Towards the end of the past week, higher transportation charges have provided support for market prices. With the end of the month approaching, traders may be willing to reduce their quotations in order to attract deals. Accordingly, for the coming week prices may soften again.

$1 = RMB 6.67