Supply declines in Chinese domestic steel section market

The Chinese domestic steel section market has moved on a slight downtrend during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $427/mt. The same product is sold at $340/mt in the Tangshan market and at $413/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $411/mt in the Shanghai market, at $340/mt in Tangshan and at $430/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 $403/mt, $354/mt and $419/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 have mostly been stable in the past seven days, though with some slight upticks also observed. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB1,930/mt ($295/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,960/mt ($299/mt), while the price of 20MnSi billet is at around RMB 2,050/mt ($313/mt). The prices are all ex-mill, including 17 percent VAT.
 
During the past week, Chinese domestic steel section prices have declined by much smaller margins compared to previous weeks, while overall trading activity has remained at normal levels. In the past week, many steel section producers have carried out maintenance works on their production lines. As a result, the overall supply volume has decreased and may continue to decline in the week ahead. It is believed that the domestic steel section market may move on a sideways trend or just fluctuate slightly in the coming week.

$1 = RMB 6.55