Pessimism prevails as Chinese steel section market falls further

Monday, 21 May 2012 17:01:16 (GMT+3)   |  
The domestic steel section market in China has declined further during the past week amid weak demand and falling billet prices, while steel mills' profit margins have narrowed.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $666/mt. The same product is sold at $605/mt in the Tangshan market and at $697/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $670/mt in the Shanghai market, at $615/mt in Tangshan and at $700/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 $678/mt, $639/mt and $689/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese market have fallen during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,610/mt ($573/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,640/mt ($595/mt), while the price of 20MnSi billet is around RMB 3,730/mt ($595/mt). The prices are all ex-mill, including 17 percent VAT.

The reduction of outputs at the beginning of the current month has failed to provide support for market prices On the traders' side, inventories are low at the current time. Occasionally, shortages have been seen for certain types of section, but this has failed to provide much support for prices. The steel mills are pessimistic about the future market trend and so they have reduced their quoted prices further. It is believed that the downward trend in China's steel section market will also continue in the coming week.  


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