Trading activity in China's steel section market has remained low in the past week. Prices in most areas have followed a stable trend, though slight drops were witnessed in some districts, with increases seen in Tangshan supported by the rebound in local billet prices.
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $658/mt. The same product is sold at $624/mt in the Tangshan market and at $686/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $656/mt in the Shanghai market, at $626/mt in Tangshan and at $681/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 $674/mt, $642/mt and $681/mt. The prices are all ex-mill, including 17 percent VAT.
As for billet, prices in the Chinese market have seen a rebound during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,590/mt ($568/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,620/mt ($573/mt), while the price of 20MnSi billet is around RMB 3,710/mt ($587/mt). The prices are all ex-mill, including 17 percent VAT.
Downstream demand for steel sections in China has still failed to improve, while traders' confidence has not yet picked up. Most traders will not raise their prices without the support of demand. Accordingly, it is thought that the domestic steel section market will maintain a stable trend in the week ahead.