Driven by the mills' increased ex-factory prices as well as the higher costs of raw materials, China's domestic section steel market stepped up slightly during the past week, against a background of slack levels of commercial activity due to the severe weather conditions.
Product Name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Angle |
50 mm x 50 mm x 5 m |
Q235 |
3,628 |
+14 |
532 |
+2 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
3,690 |
+24 |
541 |
+4 |
I-Beam |
250 mm x 118 mm x 10 m |
Q235 |
3,732 |
+100 |
547 |
+12 |
At the end of 2009, various mills successively issued their ex-factory prices for January. On December 31, Magang raised its #5 angle price by RMB 30/mt ($4/mt), its #10 channel steel price by RMB 60/mt ($9/mt) and its prices of all specifications of H-beam by RMB 80/mt ($12/mt). On January 1, 2010, Laiwu Steel and Jinxi Steel both made an upward adjustment of RMB 100/mt ($15/mt) to their H-beam ex-factory prices. Some traders that had previously anticipated the mills' price adjustments raised their sales prices but only to see few takers. Moreover, considering the successive arrivals of new materials, there is no room available for further upward movement in the domestic market.
Generally speaking, the current section steel market has remained on a rising trend in recent days. Meanwhile, downstream buyers that used to stand aside from market trading have had to accept the increased price levels, with a certain rise being recorded in low-end prices.
On the billet side, at present the market prices of 150 mm x 150 mm common carbon billet in Tangshan are at RMB 3,400 ($499/mt, tax-included), with the tax-excluded prices at RMB 3,300/mt ($484/mt); 165 mm x 165 mm common carbon billet is now offered at RMB 3,430/mt ($503/mt, tax-included), while the prices of low-alloy billet stand at RMB 3,520/mt ($516/mt). Despite a minor correction registered during the middle of the week, the domestic billet market has consistently remained at relatively high levels, offering strong cost support to prices of large and medium section steel.
As regards the future, it still seems difficult for the section steel market to move up in the short term in spite of the support of costs. Currently, northern China is seriously hit by heavy snowfalls, which are hindering transportation in the north. This situation is unlikely to see an improvement in the short term, with the result that the weather is now the biggest factor affecting the domestic section steel market.