Rebound in billet prices to provide support for Chinese steel section market

Monday, 09 January 2012 17:39:49 (GMT+3)   |  

China's steel section market has seen 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 $680/mt. The same product is sold at $639/mt in the Tangshan market and at $712/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $680/mt in the Shanghai market, at $646/mt in Tangshan and at $728/mt in the Guangzhou market. In Shanghai, Tangshan and Guangzhou markets, 250 mm x 118 mm x 10 m I-beam prices stand respectively at $688/mt, $665/mt and $712/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in China can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese market have risen as compared to one week ago. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,760/mt ($596/mt), the price of 165 x 225 mm rectangular billet stands at 3,790/mt ($600/mt), while the price of 20MnSi billet is around RMB 3,880/mt ($615/mt). The prices are all ex-mill, including 17 percent VAT.

Between the New Year and Spring Festival holidays, downstream activity is slack and demand is really low in China's steel section market. Most traders are maintaining a wait-and-see stance. With the rebound in steel billet prices in the past week, domestic steel section prices may also start to rebound. However, current lackluster demand will slow any upward tendency of prices. It is thought that the steel section market in China could fluctuate in a slightly upward direction during the coming week.    


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