Chinese Steel Market Highlights-Week 51

China’s steel market showed the upward momentum this week.Iron ore prices bounce back amid strong futures and sustained demand in domestic market.Flat steel and rebar export offers moved up on weekly basis.Coking coal price also increased further over limited availability of cargoes ahead of winter holidays in Australia.

Also,China’s crude steel production stood at 66.15 MnT tumbled by 9% against 72.36 MnT in Oct’17. This is China’s lowest ever monthly crude steel output so far in CY17.

However on yearly basis country’s crude steel performance reported a marginal decline of 3% Y-o-Y basis in Nov’17 in comparison to 68.23 MnT in Nov’16.

Seaborne iron ore prices bounce back amid rise in futures market -Seaborne iron ore prices in China started to recover over rise in steel futures.Benchmark index rebounds and closed at around USD 72/MT,CFR China on weekend.

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

Lump premium declined and stood at USD 0.0875/MT. Pellet premium declined  by USD 2.50/MT to USD 46/DMT, CFR China

Iron ore inventory at Chinese major ports have further increased this week by 1 MnT to 143.57 MnT. Domestic iron ore prices in China increased marginally on weekly premises.

Coking coal price escalates further over tight supply from Australia –Coking coal prices continue to move in upward direction amid tight supply of coking coal from Australia.Many buyers have withdrawn their bookings over higher prices.

There is no incremental production ahead of the winter holidays in Australia which will began on 20 Dec’17 and extended to 8 Jan’18.Meanwhile demand from the importing countries to stock the coal during holidays have increased which pushes the prices of coking coal on higher side.

Currently Premium HCC prices was assessed at around USD 236.50/MT FoB Australia, moved up by USD 17/MT compared to USD 219.75 /Mt in previous week.

Chinese billet export offers remained stable – Chinese billet export offers remained stable this week and are assessed around USD 555/MT,FoB China. Previously billet export offers was heard at similar levels only.

However prices in the domestic market was gauged at RMB 3,980/MT (ex-works, including VAT) in northern China in the beginning of the week which started falling and was assessed at RMB 3,950/MT (ex-works, including VAT).

Chinese HRC export offers moved up marginally -China’s HRC export offers moved up marginally by USD 5/MT owing to stability in domestic market .

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 575/MT,FoB China.Last offers were heard in the range of USD 570/MT on FoB basis.

Major mills have kept the export offers on higher side which is around USD 580-605/MT FoB China.However a deal of 3000 MT of HRC have been concluded with Vietnam in the range of USD 588/MT CFR Vietnam.

Prices of HRC in domestic market are hovering in the range of RMB 4,300-4,320/MT (Eastern China) including VAT & other taxes.

Chinese Re-bar export offers moved up-Chinese Re-bar export offers moved up by USD 20/MT W-o-W basis.

Currently nation’s re-bar export offers are at USD 560/MT on FoB basis.Previously it was assessed in range of USD 540/MT FoB basis.

However deals are likely to get concluded in the range of USD 550-555/MT FoB basis for buyers in Hong-Kong amid subdued demand of re-bar among overseas buyers.

Steel Raw Material & Finished Steel Prices in China

Source-SteelMint Research