Chinese domestic steel section quotations have not changed so much over the past week, only increasing by a tiny margin. Steel section buyers in China are cautious in their approach to prices and most of them are now sitting on the sidelines until the market outlook becomes clearer.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $749/mt. The same product is sold at $737/mt in the Tangshan market and at $754/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 $737/mt in Tangshan and at $754/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 $748/mt, $760/mt and $762/mt. The prices are all ex-mill, including 17 percent VAT.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Angle |
50 mm x 50 mm x 5 m |
Q235 |
4,706 |
8 |
724 |
1 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,808 |
10 |
740 |
2 |
I-beam |
250 mm x 118 mm x 10 m |
Q235 |
4,850 |
14 |
746 |
2 |
As for billet, prices in the Chinese market have fallen by a small margin in the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 4,410/mt ($678/mt), the price of 165 x 225 mm rectangular billet stands at RMB 4,440/mt ($683/mt), while the price of 20MnSi billet is at around RMB 4,530/mt ($696/mt). The prices are all ex-mill, including 17 percent VAT.
Buyers in eastern China prefer to delay their purchases in order to gain a clear picture of the market trend and avoid taking risks. Market players think that a downward fluctuation in local steel section prices may be seen in the coming weeks due to the low transaction volume and the decline in billet prices.
It appears that the price levels now sought by producers in southern China will not find much acceptance. End-users are refraining from making large-quantity purchases as it is very difficult to predict future price movements. In the current uncertain market situation, traders will probably have to give discounts on transactions.
Buyers are cautious towards the rising prices in northern China. In spite of relatively low inventory levels and shortages of certain sizes, buyers do not expect any significant changes in prices in the near future.