During the past week, trading activity in the Chinese domestic steel sections market has been a little weak. Prices of some large and medium sections moved slightly down in Shanghai, while in Tangshan and northern China prices of section steel rose a little due to the increased price of billet. Generally, the price trend has been in an upward direction in China's main cities. Meanwhile, due to significant arrivals of supplies, there is strong pressure on the market from inventory.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Angle |
50 mm x 50 mm x 5 m |
Q235 |
3,716 |
+22 |
545 |
+3 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
3,782 |
+32 |
555 |
+5 |
I Beam |
250 mm x 118 mm x 10 m |
Q235 |
3,804 |
+4 |
558 |
+1 |
In Shanghai, the prices of some large and medium sections have registered a downtrend, while others have maintained a stable trend. The weakness of prices of rebar and wire rod in this market is expected to have a negative impact on the local section steel market.
In the Lecong market in Guangzhou, prices of section steel remained stable, with greater activity in the market on the back of rising demand. Meanwhile, some traders increased their prices slightly. Traders here believe that future ex-factory prices will generally increase due to the high costs faced by the mills.
As regards the Tangshan region in Hebei Province, prices of large and medium section rose because of the increasing price of billet. At present, mainstream quotations of 150 mm x 150 mm common carbon billet in region are at RMB 3,440/mt ($504/mt, tax-included), though prices as low as RMB 3,320/mt ($487/mt) are also heard; 165 mm x 165 mm common carbon billet is now offered at RMB 3,470/mt ($509/mt, tax-included), while the prices of low alloy billet stand at RMB 3,560/mt ($522/mt).
Meanwhile, February production arrivals from the mills have generally been at higher prices compared to market levels. For instance, supplies from Anhui Province-based Maanshan Iron and Steel have been around RMB 50/mt ($7/mt) higher than the market price.
As for H-beam, prices have increased slightly on the back of the high price of new arrivals. Some players have commented that market demand for H-beam is a little lower at this time of the year than it was in previous years.
Generally speaking, large and medium section and H- beam are facing a situation of sufficiency of stocks, high costs and low demand. In the coming period, it is expected that section steel prices in China will follow a fluctuating trend.