In what is traditionally the busy season, the Chinese domestic section steel market has failed to register the anticipated levels of demand. Sales activities in the local section steel market have suffered against the background of the softening trend in both the semi-finished and rebar markets. Accordingly, section steel prices have in general, with the exception of H-section prices, declined slightly during the week ending October 19. As of October 19, the average section steel sales prices in the main regions of China are as follows:
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 |
4,298 |
-12 |
647 |
-2 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,280 |
-16 |
645 |
-2 |
I-beam |
250 mm x 118 mm x 10 m |
Q235 |
4,372 |
-20 |
658 |
-3 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,330/mt ($652/mt). The same product is sold at RMB 4,220/mt ($636/mt) in the Tangshan market and at RMB 4,450/mt ($670/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 m steel channels stand at RMB 4,320/mt ($651/mt) in the Shanghai market, at RMB 4,250/mt ($640/mt) in Tangshan and at RMB 4,450/mt ($670/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 4,360/mt ($657/mt), RMB 4,450/mt ($670/mt) and RMB 4,450/mt ($670/mt). The prices are all ex-mill, including 17 percent VAT.
Boosted by increased production costs, H-section prices have strengthened in the Chinese domestic market in the past week. Some traders have thus raised their offer prices. Domestic market players are now expecting that the central government policy aimed at saving energy and reducing emissions will help to push up prices.
Contrary to the H-section market, the sale prices of channel and I-beam products in the main domestic markets in China have decreased by small margins due to the increases in inventories as well as due to uncertainties in the market. On the end-users' side, no great interest has been observed as regards placing new orders.
Supported by the Chinese government's ongoing policy aimed at saving energy and reducing emissions, China's domestic section steel market is expected to trend sideways in the coming period.