The Chinese domestic steel section market has varied between slight weakness and stability during the past week. Last week, global economic concerns affected the domestic steel futures market, influencing the domestic steel section market in turn. Also, according to traders, the downstream demand side has also been weak. The general wait-and-see stance which prevails in the market puts pressure on traders' quoted prices. It is expected that the Chinese domestic steel section market will fluctuate on a weak trend in the coming week.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $759/mt. The same product is sold at $756/mt in the Tangshan market and at $767/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $759/mt in the Shanghai market, at $756/mt in Tangshan and at $782/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 $751/mt, $773/mt and $775/mt. The prices are all ex-mill, including 17 percent VAT.
Prices of coke in local Chinese markets
Product name |
Specification |
Place of origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Coke |
Second grade |
Hancheng, Shaanxi |
1,850 |
290 |
50 |
Zibo, Shandong |
2,000 |
313 |
100 |
||
Pingdingshan, Henan |
2,000 |
313 |
20 |
||
Shanghai |
2,080 |
326 |
30 |
||
Huaibei, Anhui |
2,000 |
313 |
50 |
||
Average |
1,986 |
311 |
50 |
As for billet, prices in the Chinese market have remained the same as last week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 4,440/mt ($680/mt), the price of 165 x 225 mm rectangular billet stands at 4,470/mt ($684/mt), while the price of 20MnSi billet is around RMB 4,580/mt ($697/mt). The prices are all ex-mill, including 17 percent VAT.
The section market in eastern market in China was mainly stable in the past week, while the trading volume did not improve. However, because material costs are still at high levels, traders are not very willing to cut prices. Considering the off-season is almost over and the traditional busy season is in September and October, the market may become more stable in the coming week.
Steel section prices in southern China remained stable during the past week. The strengthening of billet prices in Tangshang caused an increase in confidence levels in the local steel section market. On the inventory side, the pressure on traders is not great. However, the influence of the financial markets has been obvious. In the meantime, the demand side remains weak. Observers expect it will be difficult for steel section prices in southern China to rise in the coming week.
In the past week, the section steel market in the northern China market saw a slight drop. The main reasons for the drop were weakness of demand and global financial problems. For the market future trend, traders are cautious. There is still a risk that the local steel section market will continue to fall. Inventory levels are low at present. It is though that the northern China steel section market will fluctuate on a weak trend in the short term.