Steel section prices in China indicate minor fluctuations

In the past week, the domestic steel section market in China saw some minor fluctuating movements, with small increases seen for some products. On the producers' side, in the past week both Jiangtian Steel and Rizhao Steel issued new price policies. This influenced traders to raise their prices. On the demand side, feedback from traders indicates that the trading volume has improved somewhat compared to previous weeks and so traders are more confident. At present, pressure from inventory is not strong. In this context, the domestic steel section market in China is expected to continue to see fluctuations in the coming week .

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $741/mt. The same product is sold at $740/mt in the Tangshan market and at $752/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $749/mt in the Shanghai market, at $740/mt in Tangshan and at $767/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 $752/mt, $760/mt and $760/mt. The prices are all ex-mill, including 17 percent VAT.

As for billet, prices in the Chinese market have risen by a small margin in the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 4,420/mt ($685/mt), the price of 165 x 225 mm rectangular billet stands at 4,450/mt ($690/mt), while the price of 20MnSi billet is around RMB 4,540/mt ($704/mt). The prices are all ex-mill, including 17 percent VAT.

In the past week, the steel section market in eastern China fluctuated downward slightly. Demand still lacked strength. Cost pressure is now becoming more obvious in the market. As a result, it is thought that steel section prices in eastern China will be stable or may see some increases in the week ahead.

The southern China steel section market has been following a stable trend, while market demand is slack. In the past week, Masteel and Rizhao Steel have adjusted their prices. However, the market is maintaining a wait-and-see stance. Traders currently prefer to keep their prices stable. Meanwhile, Tangshan billet prices continue their rising trend. It is thought that the local steel section market will remain sluggish in the coming week.

In the past week, the steel section market in northern China rose in the past week, while the trading volume remained at ordinary levels. A wait-and-see stance still prevails in the market. In the short term, the main trend is expected to be a weak upward movement.