Traders optimistic in Chinese domestic steel section market

Chinese domestic steel section prices have indicated significant 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 $503/mt (RMB 3,460/mt). The same product is sold at $501/mt (RMB 3,450/mt) in the Tangshan market and at $515/mt (RMB 3,540/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $500/mt (RMB 3,440/mt) in the Shanghai market, at $523/mt (RMB 3,600/mt) in Tangshan and at $516/mt (RMB 3,550/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 $507/mt (RMB 3,490/mt), $503/mt (RMB 3,460/mt) and $590/mt (RMB 4,060/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, the Chinese domestic market has moved on a strong upward trend during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,100/mt ($451/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,120/mt ($453/mt), while the price of 20MnSi billet is at around RMB 3,220/mt ($468/mt). The prices are all ex-mill, including 17 percent VAT.

Increases in billet prices and in producers' steel section ex-works prices have caused traders in the Chinese domestic steel section market to raise their prices by significant margins in the past week, even though trading activity has remained at low levels. Demand is expected to improve in the coming week and so sentiment among traders is upbeat. It is thought that domestic steel section prices in China will indicate some fluctuations on an upward trend in the week ahead.

$1 = RMB 6.88