Low supply and weak demand in Chinese domestic steel section market

The Chinese domestic steel section market has continued to move on an upward 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 $439/mt. The same product is sold at $394/mt in the Tangshan market and at $456/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $431/mt in the Shanghai market, at $416/mt in Tangshan and at $478/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 $444/mt, $442/mt and $516/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, prices in the Chinese domestic market have increased in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB2,330/mt ($364/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,360/mt ($369/mt), while the price of 20MnSi billet is at around RMB 2,450/mt ($383/mt). The prices are all ex-mill, including 17 percent VAT.
 
The shortage of inventory has been the main factor contributing to the ongoing rising trend of the local Chinese steel section market in the past week. At the same time, overall trading activity has remained at low levels, while many traders have chosen to maintain a wait-and-see stance amid the upward trend of prices. It is expected that low supply volumes will continue to provide support for prices in the coming period. As for the week ahead, it is thought that domestic steel section prices may continue their rising trend.

$1 = RMB 6.68