Is Chinese steel section market entering a rising phase?

Monday, 10 September 2012 16:03:29 (GMT+3)   |  
       

While steel section prices in China generally maintained their downward trend in the past week, some upticks in prices have been seen in central China at the end of the week.
 
In the Shanghai market, the price of 50 mm x 50 mm x 5 m steel angles is now at $565/mt. The same product is sold at $521/mt in the Tangshan market and at $576/mt in the Guangzhou market. Meanwhile, prices of 160 mm x 65 mm x 8.5 mm steel channels stand at $565/mt in the Shanghai market, at $521/mt in Tangshan and at $584/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 $576/mt, $538/mt and $571/mt. The prices are all ex-mill, including 17 percent VAT. Average steel section prices in the Chinese market can be viewed in the SteelOrbis price reports section.

As for billet, prices in Tangshan have indicated some increases during the past week. In Tangshan, the current price of Q235 150 x 150 mm square billet is at RMB 2,960/mt ($467/mt), the price of 165 x 225 mm rectangular billet stands at RMB 2,990/mt ($472mt), while the price of 20MnSi billet is around RMB 3,080/mt ($486/mt). The prices are all ex-mill, including 17 percent VAT.

Steel section prices in China generally maintained their downward trend in the past week, However, on September 7, amid increases in the stock markets in eastern Asia and in China, rebar futures prices in China started to rebound, while the rebound of billet prices today, September 10 has also contributed to increases in steel section prices in central China. However, the performance of actual demand will be a key factor in determining the degree of support for upward price movement in China's steel section market. It is believed that steel section prices in China will indicate some rising movement in the coming seven days.


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