Trading activity still weak in local Chinese steel section market

The Chinese domestic steel section market has moved on a decreasing trend during the past week, though decrease margins have been smaller compared to the previous week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $448/mt. The same product is sold at $371/mt in the Tangshan market and at $481/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $440/mt in the Shanghai market, at $374/mt in Tangshan and at $508/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 $440/mt, $381/mt and $502/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 softened slightly in the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,000/mt ($323/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,030/mt ($328/mt), while the price of 20MnSi billet is at around RMB 2,120/mt ($343/mt). The prices are all ex-mill, including 17 percent VAT.
 
Weak trading activity is still the main reason for the downtrend of the Chinese domestic steel section market, while the soft trend of billet prices has also been a factor. However, after the downward movement seen in prices in previous weeks, it is believed that the market trend may be mostly stable in the coming week, with some slight decreases also possible.