Average prices in the Chinese domestic steel section market have trended down slightly in the past week amid sluggish demand.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $619/mt. The same product is sold at $569/mt in the Tangshan market and at $617/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $609/mt in the Shanghai market, at $569/mt in Tangshan and at $633/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 $622/mt, $609/mt and $630/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in China can be viewed in the SteelOrbis price reports section.
As for billet, prices in the Chinese market have softened slightly compared to the previous week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,230/mt ($518/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,260/mt ($522mt), while the price of 20MnSi billet is around RMB 3,350/mt ($537mt). The prices are all ex-mill, including 17 percent VAT.
Steel section prices have moved on a downward trend in almost half of the major local markets in China in the past week. However, prices were stable in some other markets, while prices in the north and northeast were up slightly following the strong decreases seen in previous weeks. Most traders are pessimistic on the prospects for the market in the coming period, especially as demand is very sluggish and as new supplies have been arriving in the market. Some big traders have reduced prices in order to increase their trading volumes, with the result that some local steel mills are obliged to follow the downward price trend. The overall trend in the market is expected to remain soft in the coming week.