Weak demand and negative sentiment in local Chinese steel section market

Average prices in the Chinese domestic steel section market have moved on a slight downtrend in the past week.

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $369/mt. The same product is sold at $320/mt in the Tangshan market and at $410/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $359/mt in the Shanghai market, at $318/mt in Tangshan and at $400/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 $358/mt, $321/mt and $415/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 1,750/mt ($273/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,780/mt ($278/mt), while the price of 20MnSi billet is at around RMB 1,870/mt ($292/mt). The prices are all ex-mill, including 17 percent VAT.

Many Chinese domestic steel section prices have indicated minor decreases in the past week due to weak demand and the soft trend of billet prices, while prices of some steel section products have moved on a stable trend due to lack of inventory. Market sentiment is still negative. It is believed that in the coming week local Chinese steel section prices may continue their slight downtrend.

The prices are on theoretical weight basis, all prices include 17 percent VAT and all prices are ex-warehouse.
 
$1 = RMB 6.40