Weak sentiment in sluggish Chinese domestic steel section market

The Chinese domestic steel section market has moved on a rising trend in the past week.

 

In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $321/mt. The same product is sold at $299/mt in the Tangshan market and at $373/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $312/mt in the Shanghai market, at $299/mt in Tangshan and at $366/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 $323/mt, $310/mt and $384/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 indicated increases during the past seven days. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 1,670/mt ($262/mt), the price of 165 x 225 mm rectangular billet stands at RMB 1,700/mt ($267/mt), while the price of 20MnSi billet is at around RMB 1,790/mt ($282/mt). The prices are all ex-mill, including 17 percent VAT.

Despite the increases seen in billet prices, Chinese domestic steel section prices have increased by relatively smaller margins due to the slackness of trading activity. Sentiment in the market is currently on the weak side due to poor demand. It is thought that some slight upticks in local steel section prices may be seen in the week ahead.

 

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

 

$1 = RMB 6.58