Weak activity and lower upstream costs impact local Chinese steel section market

The Chinese domestic steel section market has followed a downward trend 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 $419/mt. The same product is sold at $342/mt in the Tangshan market and at $432/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $406/mt in the Shanghai market, at $342/mt in Tangshan and at $447/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 $397/mt, $348/mt and $427/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 by relatively significant margins during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,900/mt ($310/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,930/mt ($315/mt), while the price of 20MnSi billet is at around RMB 2,020/mt ($330/mt). The prices are all ex-mill, including 17 percent VAT.
 
The declines in billet prices and the ongoing slackness of trading activity in the local Chinese steel section market have contributed to the downward trend of domestic steel section prices during the past week. Section prices are expected to remain on a downtrend during the week ahead amid a lack of support from demand and from billet prices.

Product name	Spec.	Category	City	Steel plant/origin	Price (RMB/mt)	Price ($/mt)	Weekly change (RMB/mt)
Angle	1 mm x 1 mm x 5 mm	Q235	Shanghai	Masteel	2,600	419	↓20
			Beijing	Tangshan	2,230	359	↓10
			Tangshan	Tangshan	2,120	341	↓80
			Tianjin	Zhaobo	2,530	407	0
			Guangzhou	Tongsteel	2,680	432	↓70
			Average	-	2,432	392	↓36
Channel	160 mm x 65 mm x 8.5 mm	Q235	Shanghai	Masteel	2,520	406	↓20
			Beijing	Xuangang	2,250	362	↓10
			Tangshan	Tangshan	2,120	341	↓70
			Tianjin	Jiangtian	2,190	353	↓40
			Guangzhou	Liusteel	2,770	446	↓90
			Average	-	2,370	382	↓46
I Beam	21 mm x 118 mm x 10 mm	Q235	Shanghai	Laiwu	2,460	396	↓40
			Beijing	Laiwu	2,290	369	↓20
			Tangshan	Tangshan	2,160	348	↓80
			Tianjin	Haicheng	2,360	380	↓80
			Guangzhou	Haicheng	2,650	427	↓50
			Average	-	2,384	384	↓54

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