Local Chinese steel section market still impacted by weak activity

The Chinese domestic steel section market has moved on a slight downtrend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $423/mt. The same product is sold at $355/mt in the Tangshan market and at $444/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $410/mt in the Shanghai market, at $353/mt in Tangshan and at $461/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 $403/mt, $361/mt and $435/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in the local Chinese market are presented in the following table

As for billet, prices in the Chinese domestic market price have been stable during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,970/mt ($317/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,000/mt ($322/mt), while the price of 20MnSi billet is at around RMB 2,090/mt ($337/mt). The prices are all ex-mill, including 17 percent VAT.
 
Due to the influence of price cuts by domestic steel section producers and low demand, prices in the Chinese domestic steel section market have softened slightly. It is believed that Chinese domestic steel section prices will continue to see minor decreases in the coming week amid a lack of support from trading activity.

The prices are on theoretical weight basis, all prices include 17 percent VAT and all prices are ex-warehouse.
 
$1 = RMB 6.20