Prices in local Chinese steel section market slightly decrease

Prices in local Chinese steel section market have mostly indicated a slight decrease in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $657/mt (RMB 4,490/mt). The same product is sold at $653/mt (RMB 4,460/mt) in the Tangshan market and at $703/mt (RMB 4,800/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $638/mt (RMB 4,360/mt) in the Shanghai market, at $651/mt (RMB 4,450/mt) in Tangshan and at $725/mt (RMB 4,950/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 $641/mt (RMB 4,380/mt), $646/mt (RMB 4,410/mt) and $716/mt (RMB 4,890/mt). The prices are all ex-mill, including 16 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.

As for billet, Chinese domestic market prices have declined during past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 4,080/mt ($597/mt), the price of 165 x 225 mm rectangular billet stands at RMB 4,100/mt ($600/mt), while the price of 20MnSi billet is at around RMB 4,200/mt ($615/mt). The prices are all ex-mill, including 16 percent VAT.

Domestic steel section prices in China have followed an uptrend at the beginning of the past week but then declined and closed the given week at a lower price level week-on-week. Overall trading activity in the local Chinese steel section market has remained at low levels. The recent fall in both rebar future prices and billet prices in China has been the main reason of the declines recorded in steel section market. Meanwhile, demand in the market has softened due to prices remaining at high levels, and so most traders are more willing to slightly reduce their steel section prices in order to stimulate deals at the end of month. As for next week, steel section market prices may indicate a fluctuating trend with slight potential to increase. 

$1 = RMB 6.83