Chinese Steel Market Highlights-Week 6, 2018

This week Chinese flat steel export offers moved up.Coking coal prices moved up further over active buying from Chinese buyers.And re-bar export offers remained unaltered ahead of festive holidays.However Seaborne iron ore prices for high grade fines increased.

China’s finished steel export volumes slashed by 37% Y-o-Y to 4.65 MnT in Jan’18 as compared to 7.42 MnT in Jan’17. Chinese steel export volumes in Jan’18 are lowest since Feb’13. On monthly basis also nation’s finished flat export volumes reported decline of 18% as compared to 5.67 MnT in Dec’17.

Seaborne iron ore prices rise for high grade fines – Iron ore fines (Fe 62%) moved up from USD 75.9/MT,CFR in beginning of week to USD 77.85/MT, CFR towards the weekend. Buying interest for high grade Fe% content fines, prices moved up. Pellet premium fell by USD 2.4/MT W-o-W to USD 39.7/DMT, CFR China. Spot lump premium remained unchanged at USD 0.181/MT, CFR China.

Coking coal prices rose sharply over positive buying – Australian coking coal offers moved up further this week amid active buying from Chinese steelmakers. Huge volume coking coal has been imported to China since Chinese mills are planning to resume steel production in full swing post Lunar New Year Holidays.This has resultant to surge in imported coking coal prices from Australia.

Currently,Premium HCC prices were assessed at around USD 227.50/MT FoB Australia, rose by USD 10/MT which was at USD 217.5/MT FoB basis in preceding week.

Chinese domestic billet offers witness decline -Domestic billet prices in China moved down throughout the week. Domestic billet prices in Northern China were assessed at RMB 3,640/MT (ex-works) which fell to RMB 3,610/MT (ex-works) by weekend.However billet export offers remained unchanged this week.

Chinese HRC export offers inched up marginally – Chinese HRC export offers inch up by USD 5-10/MT ahead of Lunar New Holidays scheduled in the mid of February’17. During the holidays, manufacturers in China will not be seen offering fresh export offers and will return back in late February.

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 585-590/MT,FoB China.,FoB basis.Payment are made on letter of credit basis for 1,000-10,000 MT. However major mills like Yanshan Iron & Steel and Rizhao Iron & Steel in China are offering HRC at USD 595/MT FoB China.

Prices of HRC in domestic market went down by RMB 10/MT D-o-D basis and are hovering in the range of RMB 4,110-4,130/MT (Eastern China) and RMB 4,000-4,030/MT (Northern China) including VAT & other taxes.

Chinese Re-bar export offers remain unchanged –Chinese rebar export offers remained unaltered this week owing to dull buying and weaker market sentiments in domestic market.

Currently, nation’s re-bar export offers are at USD 552/MT on FoB basis.Market participants are anticipating that bids were heard at USD 550-555/MT FoB basis. However sellers in China will announce fresh export offers of Rebar post New Year holidays.

Steel Raw Material & Finished Steel Prices in China

Source-SteelMint Research