Chinese steel section market softens amid slack demand and lower billet prices

Monday, 15 October 2012 16:03:30 (GMT+3)   |  
       

In the past week, the Chinese steel section market first continued its rising trend, but then started to indicate downward movement.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $585/mt. The same product is sold at $563/mt in the Tangshan market and at $618/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $585/mt in the Shanghai market, at $566/mt in Tangshan and at $610/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 $594/mt, $590/mt and $626/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

As for billet, prices in the Chinese market have indicated a decline during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 3,220/mt ($510/mt), the price of 165 x 225 mm rectangular billet stands at RMB 3,250/mt ($515mt), while the price of 20MnSi billet is around RMB 3,340/mt ($529/mt). The prices are all ex-mill, including 17 percent VAT.

The steel section market in China initially moved up during the past week, while the trading volume was good. However, as demand started to decline and as billet prices indicated a softening, the domestic steel section market started to move on a downward trend. It is thought that the steel section market in China may fluctuate in a downward direction in the coming seven days.


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