Chinese Steel Market Highlights-Week 49

This week Chinese steel market can be attributed as higher domestic prices over strong futures amid production cut announced by the government to curb smog.Flat steel and rebar export offers moved up marginally.Coking coal price increased further uptrend over tight supply amid positive demand from non-Chinese buyers.Also,Chinese iron ore prices registered the surge.

Seaborne iron ore prices increased sharply- Seaborne iron ore prices in China increased amid hike in iron and steel futures. Benchmark index moved up further and closed at around USD 70/MT, CFR China.

Spot lump premium fell amid softening demand in seaborne lump market and increased stock of lump at Chinese major ports.

Lump premium stood at USD 0.10/MT. Pellet premium declined to by USD 4/MT to USD 49.5/DMT, CFR China as Chinese steel mills preferred to go for pellets made out of concentrate rather than importing pellets at a high price

Iron ore inventory at Chinese major ports have further increased this week by 1.15 MnT to 141.67 MnT.Domestic iron ore prices in China increased marginally on weekly premises.

Coking coal prices rose sharply amid over tight supply– Coking coal prices have also registered the hike amid tight supply of cargoes due to congestion in the major coal handling port terminals in Australia.On the other side the demand from India and major nations is positive as they are actively importing coking coal for restocking their inventories amid arrival of winter season in Australia.

Currently Premium HCC prices was assessed at around USD 191/MT FoB Australia, moved up by USD 5/MT against USD 206/MT in previous week.

Chinese billet export offers moved up by USD 10 /MT amid rising domestic prices – Chinese billet export offers are assessed around USD 545/MT,FoB China against the previous offers which was around USD 535/MT,FoB basis. Domestic billet prices in China have reached to RMB 3,890/MT (ex-works, including VAT) in northern China since the prices in the beginning of the week was assessed at RMB 3,840/MT (ex-works, including VAT).

Chinese HRC export offers inched up amid surge in domestic prices- Nation’s HRC export offers has started showing uptrend USD 5-10/MT amid gains in the domestic market.Strengthening domestic prices leads to higher HRC export offers from China.

This week HRC commercial grade ASTM A36 export offers are heard at USD 560-570/MT, FoB China.Meanwhile prices in the domestic market are heard at RMB 4,250-4,270/MT (ex-works),D-o-D basis.

Chinese Rebar export offers rose marginally – Chinese Rebar export offers moved up marginally by USD 3-5/MT W-o-W basis and are heard in the range of USD 540/MT FoB China against last assessment which was at USD 535/MT,Fob basis.

Major Chinese mills are offering on the higher side which is around USD 570/MT FoB basis however no bookings have been made in the prevailing prices.Thus overseas buyers are reluctant to purchase over increased prices.

Steel Raw Material & Finished Steel Prices in China

Source-SteelMint Research