Section steel prices still on the rise in China

During the week ending January 25, section steel prices have continued to move up in the Chinese domestic market. Traders are mostly positive on the prospects for the post-holiday market, although so far no improvement has been observed in levels of market activity. As of January 25, the average section steel sales prices in the main regions of China are as follows:

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,830/mt ($734/mt). The same product is sold at RMB 4,650/mt ($707/mt) in the Tangshan market and at RMB 4,750/mt ($722/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,880/mt ($742/mt) in the Shanghai market, at RMB 4,670/mt ($710/mt) in Tangshan and at RMB 4,850/mt ($737/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 RMB 4,820/mt ($733/mt), RMB 4,850/mt ($737/mt) and RMB 4,800/mt ($730/mt). The prices are all ex-mill, including 17 percent VAT.

Steel billet prices decline in Tangshan

In the Tangshan market, the price of common carbon billets of 150 mm x 150 mm size has dropped to RMB 4,350/mt ($661/mt), including 17 percent VAT. During the last week ahead of China's Spring Festival/New Year holiday, the market demand for steel billet remains low, especially as buyers are not inclined to book materials when prices are declining.

Approaching the Spring Festival, in China's eastern region end-users have almost completed their purchases, while traders are mostly expected to slightly raise their offers ahead of the holiday. However, in the northern region, the major mills have again hiked their listed prices by RMB 30-60/mt ($5-10/mt), obliging local traders to increase their offer levels also. Most market analysts think section steel prices in China will remain on an upward curve at least in the short term on the back of low inventories of raw materials and steel billet.