The Chinese domestic steel section market has witnessed upticks in prices during the past week.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $492/mt. The same product is sold at $455/mt in the Tangshan market and at $503/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $481/mt in the Shanghai market, at $456/mt in Tangshan and at $531/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 $481/mt, $477/mt and $524/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 risen compared to the price levels seen just before the National Day Holiday. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,510/mt ($410/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,540/mt ($415/mt), while the price of 20MnSi billet is at around RMB 2,630/mt ($430/mt). The prices are all ex-mill, including 17 percent VAT.
Due to air pollution in the northern and central regions of China, production operations of steel mills in the areas in question have been restricted by government measures, with steel supply volumes in these regions decreasing by almost 30 percent. In this context, prices of steel sections have increased in the northern and central regions of China in the past week. Meanwhile, billet prices have also increased due to production restrictions. However, it is believed that, since an improvement in the sluggish domestic demand situation for steel sections is unlikely, there will be a lack of support for further price increases in the market. Overall, China's domestic steel section market is likely to follow a mostly stable trend in the coming week, with some slight upticks also possible.