Positive sentiment in Chinese domestic steel section market

Chinese domestic steel section prices are down slightly compared to one week ago.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $553/mt (RMB 3,820/mt). The same product is sold at $513/mt (RMB 3,550/mt) in the Tangshan market and at $560/mt (RMB 3,870/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $560/mt (RMB 3,780/mt) in the Shanghai market, at $518/mt (RMB 3,580/mt) in Tangshan and at $554/mt (RMB 3,830/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 $556/mt (RMB 3,840/mt), $530/mt (RMB 3,660/mt) and $618/mt (RMB 4,270/mt). The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in table below.

Prices of billet in the Chinese domestic market have indicated a small increase during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,220/mt ($466/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,250/mt ($470/mt), while the price of 20MnSi billet is at around RMB 3,340/mt ($483/mt). The prices are all ex-mill, including 17 percent VAT.

In the past week, Chinese domestic steel section prices first moved down amid decreases in futures and billet prices, before then moving back up with support from higher billet prices. At present, prices are down just slightly week on week. Sentiment in the market is positive, while trading activity is at medium levels, having improved amid better weather conditions. It is believed that domestic steel section prices in China will just indicate slight fluctuations in the coming week.

 $1 = RMB 6.91