Demand slackens further in Chinese domestic steel section market

The Chinese domestic steel section market has mostly followed a downward trend during the past week

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $647/mt (RMB 4,290/mt). The same product is sold at $616/mt (RMB 4,090/mt) in the Tangshan market and at $692/mt (RMB 4,590/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $641/mt (RMB 4,250/mt) in the Shanghai market, at $621/mt (RMB 4,120/mt) in Tangshan and at $698/mt (RMB 4,630/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 $626/mt (RMB 4,150/mt), $629/mt (RMB 4,170/mt) and $703/mt (RMB 4,660/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, Chinese domestic market price also showed a slightly downward trend in past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,660/mt ($552/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,680/mt ($555/mt), while the price of 20MnSi billet is at around RMB 3,760/mt ($567/mt). The prices are all ex-mill, including 17 percent VAT.

With overall trading activity remaining at low levels and even slackening further, the Chinese domestic steel section market has moved on a soft trend during the past week. At the same time, reduced supply due to environmental measures has provided some support for prices. Approaching the end of the month, traders are more willing to reduce prices to conclude sales and bring in cash and so domestic steel section prices may soften further.

$1 = RMB 6.63