Trading activity remains weak in Chinese domestic steel section market

Chinese domestic steel section prices have declined slightly on week-on-week basis.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $653/mt (RMB 4,330/mt). The same product is sold at $640/mt (RMB 4,240/mt) in the Tangshan market and at $700/mt (RMB 4,640/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $649/mt (RMB 4,300/mt) in the Shanghai market, at $637/mt (RMB 4,220/mt) in Tangshan and at $719/mt (RMB 4,770/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 $637/mt (RMB 4,220/mt), $647/mt (RMB 4,290/mt) and $706/mt (RMB 4,680/mt). The prices are all ex-mill, including 17 percent VAT. Steel section prices in the Chinese domestic market can be viewed in the table below.

As for billet, prices of this semi-finished steel product in the Chinese domestic market are unchanged week on week, having first increased during the past week and then declined. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,800/mt ($573/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,820/mt ($576/mt), while the price of 20MnSi billet is at around RMB 3,900/mt ($588/mt). The prices are all ex-mill, including 17 percent VAT.

Like billet prices, in the past week prices in the local Chinese steel section market first moved upwards but later declined, and they are now down slightly on week-on-week basis. Steel section producers mostly want to raise their prices, while traders are more willing to lower prices in order to conclude sales. As for the coming week, it is believed that domestic steel section prices will fluctuate on a slightly soft trend given the off-season and low trading activity.

$1 = RMB 6.63