Slow activity and reduced supply in Chinese domestic steel section market

The Chinese domestic steel section market has followed a rising trend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $415/mt. The same product is sold at $373/mt in the Tangshan market and at $441/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $402/mt in the Shanghai market, at $383/mt in Tangshan and at $468/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 $411/mt, $405/mt and $481/mt. The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.

As for billet, prices in the Chinese domestic market have moved on an upward direction in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,080/mt ($313/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,110/mt ($318/mt), while the price of 20MnSi billet is at around RMB 2,200/mt ($331/mt). The prices are all ex-mill, including 17 percent VAT.
 
Overall trading activity has been sluggish in the Chinese domestic steel section market during the past week. In addition to higher billet prices, reductions in supply volumes due to environmental protection measures have provided support for domestic steel section prices. As for the coming week, it is believed that the upward trend in the domestic steel section market may continue.

$1 = RMB 6.64