Influence by the softening seen in other domestic steel product markets, China's steel section market has also declined, while activity levels in the market have been low. Many traders are eager to sell off their inventories at negotiated prices in order to accelerate their cash flows. Nevertheless, on the back of higher production costs, no big decrease in sales prices of steel sections is expected in the near future. As of March 1, average sales prices of steel sections in the main Chinese cities are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Angle |
50 mm x 50 mm x 5 m |
Q235 |
4,582 |
-34 |
697 |
-5 |
Channel |
160 mm x 65 mm x 8.5 m |
Q235 |
4,714 |
-40 |
718 |
-6 |
I-beam |
250 mm x 118 mm x 10 m |
Q235 |
4,796 |
-54 |
730 |
-8 |
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at RMB 4,870/mt ($741/mt). The same product is sold at RMB 4,520/mt ($688/mt) in the Tangshan market and at RMB 4,770/mt ($726/mt) in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at RMB 4,890/mt ($744/mt) in the Shanghai market, at RMB 4,620/mt ($703/mt) in Tangshan and at RMB 4,900/mt ($746/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 RMB 4,900/mt ($746/mt), RMB 4,780/mt ($728/mt) and RMB 4,820/mt ($734/mt). The prices are all ex-mill, including 17 percent VAT.
In the Tangshan market, the price of common carbon billets of 150 mm x 150 mm size has dropped by RMB 20-40/mt ($3-6/mt) week on week to RMB 4,250/mt ($647/mt), while 165 mm x 225 mm size material is now priced at RMB 4,300/mt ($654/mt), including 17 percent VAT. However, these price levels have not attracted much interest.
In the eastern region of China, traders' sales prices for steel section products in actual transactions have been RMB 50-60/mt ($7-9/mt) lower than their offers during the past week. In the southern regions, steel section prices have fallen down significantly due to the pessimistic attitude of market players and tight cash availability. In northern China, market demand has been slow. As regards the coming period, it is considered that Chinese steel section prices will not drop down much further.