Supply volumes increase in sluggish local Chinese steel section market

The Chinese domestic steel section market has mostly moved on a slight downtrend in the past seven days.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $400/mt. The same product is sold at $331/mt in the Tangshan market and at $421/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $389/mt in the Shanghai market, at $327/mt in Tangshan and at $424/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 $384/mt, $337/mt and $421/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 moved sideways during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,820/mt ($293/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,850/mt ($298/mt), while the price of 20MnSi billet is at around RMB 1,940/mt ($312/mt). The prices are all ex-mill, including 17 percent VAT.

During the past week, prices in the local Chinese steel section market have decreased by smaller margins compared to the previous week, while in a few areas prices have moved sideways. Overall trading activity in the market has remained slack, whereas volumes of output and supply have continued to increase due to the relatively low levels of billet prices. As for the coming week, it is believed that domestic steel section prices will indicate further slight downticks.

The prices are on theoretical weight basis, all prices include 17 percent VAT and all prices are ex-warehouse.
 
$1 = RMB 6.21