Poor sentiment in sluggish Chinese domestic steel section market

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $432/mt. The same product is sold at $358/mt in the Tangshan market and at $450/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $416/mt in the Shanghai market, at $356/mt in Tangshan and at $469/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, $363/mt and $439/mt. The prices are all ex-mill, including 17 percent VAT.

As for billet, prices in the Chinese domestic market have indicated minor downticks during the last seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,970/mt ($321/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,000/mt ($326/mt), while the price of 20MnSi billet is at around RMB 2,090/mt ($341/mt). The prices are all ex-mill, including 17 percent VAT.

Trading activity in the Chinese domestic steel section market has remained sluggish during the past week, while the downticks in billet prices have also contributed to the poor sentiment among local traders of steel sections. With the weather getting hotter, it is thought that demand is unlikely to register any improvement during the next few weeks. It is expected that the Chinese domestic steel section market will continue to move on a slightly soft trend in the coming week.

The prices are on theoretical weight basis, all prices include 17 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.20