Chinese Steel Market Highlights- Week 46

This week Chinese steel market remained volatile owing to fluctuations in futures.Chinese flat steel products and re-bar export offers remained on lower side.However Coking coal prices also showed uptick in prices as the demand improves from non chinese buyers. Iron ore fines benchmark index moved up by USD 2-3/MT. Chinese buyers are waiting for the new guidance from the government on steel production cuts which are likely to be out on 15 Nov’17.

Seaborne iron ore prices moved up against last week– Seaborne iron ore prices in China increased and kept hovering between USD 62-63/MT, CFR China amid rise in futures. Spot lump premium witnessed marginal increase and stood at USD 0.207/MT. However pellet premium moved up slightly to USD 59.5/DMT, CFR China owing to strong demand from Chinese steel mills. Iron ore inventory at Chinese major ports stood at 137.9 MnT, up by 1.2% against last week.

Coking coal prices moved up marginally – Severe production cut led to drop in coking coal imports volumes in China.However revival of demand from non-Chinese buyers has compelled the sellers to uptick the coking coal prices.Meanwhile congestion at the DBCT, one of the main coal handling port terminals in Australia, also contributed to the uptick in the coking coal prices.

Currently Premium HCC prices was assessed at around USD 181.50/MT FoB Australia, slightly up by USD 2.5/MT against USD 179/MT in previous week.

Domestic billet prices in China increased towards the week end – Domestic billet prices in China have increased after witnessing stability towards beginning of the week. The latest offers are heard around RMB 3,720/MT (ex-works, including VAT) in northern China. Chinese billet export offers are assessed around USD 510-515/MT, FoB.

Chinese HRC export offers dropped amid weak purchases- Chinese HRC export offers inched down by USD 5/MT W-o-W amid volatility and frequent fluctuation in futures market.Also domestic prices have lost their upward momentum resulting to drastic decline of export offers from China.

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 545/MT, FoB China.

Major mills in China are offering in the range of USD 545-550/MT FoB basis.However traders in domestic market are concluding the deal in range of USD 540/MT, FoB basis.

Chinese Rebar export offers decline by USD 5/MT – Chinese Rebar export offers witness the fall by USD 5/MT and are heard in the range of USD 525-540/MT FoB China.Also Indian re-bar was offered in the range of USD 510/MT CFR basis however no bookings have been made in the range.

Steel Raw Material & Finished Steel Prices in China

Quantity in USD/MT
Source: SteelMint Research