Prices increase in local Chinese steel section market

The Chinese domestic steel section market has kept a slightly upward trend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $371/mt. The same product is sold at $332/mt in the Tangshan market and at $415/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $363/mt in the Shanghai market, at $329/mt in Tangshan and at $402/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 $358/mt, $337/mt and $416/mt. The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese domestic market have rebounded during last week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,790/mt ($288/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,820/mt ($293/mt), while the price of 20MnSi billet is at around RMB 1,910/mt ($308/mt). The prices are all ex-mill, including 17 percent VAT.

Prices in the local Chinese section market have rebounded in the past week, while overall trade volume has continued to be at low levels in the same period. Upstream billet prices have indicated an upward trend which is the main reason of the increases recorded in the local Chinese section prices. Meanwhile, the supply volume and inventory levels have indicated a downward trend, also providing a certain support for Chinese section prices. As for the next week, experts believe that the market will still be characterized by weakness, while slack demand will continue putting downward pressure on section prices. It is thought that section prices in the Chinese market will just indicate minor fluctuations in the week ahead.

The prices are on theoretical weight basis, all prices include 17 percent VAT and all prices are ex-warehouse.
 
$1 = RMB 6.21