Weak activity in Chinese domestic steel section market

The Chinese domestic steel section market has moved on a downward trend during the past week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $347/mt. The same product is sold at $296/mt in the Tangshan market and at $380/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $337/mt in the Shanghai market, at $286/mt in Tangshan and at $375/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 $348/mt, $299/mt and $396/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 during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,600/mt ($252/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,630/mt ($257/mt), while the price of 20MnSi billet is at around RMB 1,720/mt ($271/mt). The prices are all ex-mill, including 17 percent VAT.

In the past week, steel section prices in the central and northern regions of China have decreased by larger margins compared to prices in southern China. The slack trading activity in the market is believed to be the main reason for the price decreases. However, some traders consider that prices are already at very low levels, adding that traders and mills are already incurring losses. As a result, if a further price decrease is seen next week, the decrease margin is expected to be on the small side. For the coming week, it is thought that the domestic steel section market may move on a slight downtrend.

The prices are on theoretical weight basis, all prices include 17 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.34