Demand remains weak in Chinese domestic steel section market

Chinese domestic steel section prices have fluctuated on a slight downtrend during the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $408/mt. The same product is sold at $361/mt in the Tangshan market and at $430/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $394/mt in the Shanghai market, at $377/mt in Tangshan and at $457/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 $396/mt, $389/mt and $470/mt. The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese domestic market have followed a stable trend in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,000/mt ($299/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,030/mt ($304/mt), while the price of 20MnSi billet is at around RMB 2,120/mt ($317/mt). The prices are all ex-mill, including 17 percent VAT.

The slight downticks in the local Chinese steel section market in the past week, following the increases in previous weeks, have come against the backdrop of ongoing weak demand amid adverse weather conditions. The sideways movement of billet prices has also negatively impacted sentiment in the steel section market. It is believed that small fluctuations may be seen in domestic steel section prices in the coming week, with prices characterized by some softness.

$1 = RMB 6.68