Despite the influence of the latest benchmark interest rate hike made by the Chinese central bank, section steel prices in the domestic market have not yet shown any large fluctuations, just trending sideways with minor changes. As of October 26, the average section steel sales prices in the main regions of China are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Angle |
50 mm x 50 mm x 5 m |
Q235 |
4,298 |
0 |
644 |
0 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,270 |
-10 |
640 |
-1 |
I-beam |
250 mm x 118 mm x 10 m |
Q235 |
4,382 |
+10 |
657 |
+1 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,330/mt ($649/mt). The same product is sold at RMB 4,220/mt ($633/mt) in the Tangshan market and at RMB 4,450/mt ($667/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,320/mt ($648/mt) in the Shanghai market, at RMB 4,240/mt ($636/mt) in Tangshan and at RMB 4,450/mt ($667/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 RMB 4,360/mt ($654/mt), RMB 4,450/mt ($667/mt) and RMB 4,500/mt ($675/mt). The prices are all ex-mill, including 17 percent VAT.
In the Tangshan market the price of common carbon billets of 150 mm x 150 mm size has risen to RMB 3,910/mt ($586/mt), while the price of low alloy billet has increased to RMB 4,030/mt ($604/mt). Both prices include 17 percent VAT. Section steel producers have lately been opting to wait for a clearer market situation and not to purchase too many billets for the time being.
Reports have been circulating that the Tangshan government is again to implement power rationing measures in the near future. In this event, supplies of section steel products would decline, thus helping local section prices to stay firm or even trend up.
During the traditionally busy season in September and October, the anticipated boost in transaction volumes did not materialize. With the approach of winter, market insiders are not positive on the prospects for buying activity in the coming period.