Strong upward trend in Chinese domestic steel section market

Chinese domestic steel section prices have indicated sharp increases during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $433/mt (RMB 2,990/mt). The same product is sold at $412/mt (RMB 2,850/mt) in the Tangshan market and at $473/mt (RMB 3,270/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $439/mt (RMB 3,030/mt) in the Shanghai market, at $431/mt (RMB 2,980/mt) in Tangshan and at $482/mt (RMB 3,330/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 $453/mt (RMB 3,130/mt), $444/mt (RMB 3,070/mt) and $544/mt (RMB 3,760/mt). The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.
 
As for billet, prices in the Chinese domestic market moved on a strong upward trend in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,730/mt ($395/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,760/mt ($399/mt), while the price of 20MnSi billet is at around RMB 2,870/mt ($415/mt). The prices are all ex-mill, including 17 percent VAT.
 
Trading activity has remained weak in the local Chinese steel section market in the past week, while higher billet prices and increases in raw material prices in the futures and spot markets have contributed to the rises in domestic steel section prices. Meanwhile, some producers will start maintenance works around mid-December, which will also provide support for steel section prices. Domestic producers have increased steel section quotations on the back of higher costs, but downstream buyers may find it difficult to accept the new price levels. It is expected that the upward trend of the market will continue in the coming week, while trading activity will likely slacken further.

$1 = RMB 6.91