Towards the beginning of this week Chinese steel market showed downward trend amid weakening sentiments in domestic market. However by the end of the week domestic market started showing recovery over gains in future market.
According to NBS ( National bureau of Statistics ) in Feb’18 country’s crude steel production stood at 69.8 MnT inched up 4% against 67 MnT in Jan’18.However on yearly basis the same reported the increase of 14% against 61.19 MnT in Feb’17.During Jan-Feb’18, China’s crude steel output climbed by 6% Y-o-Y to 136.8 MnT.
Spot iron lump premium stood at 0.17/MT, CFR China. Spot pellet premium increased sharply to USD 44.85/DMT, CFR China.
Iron ore stocks at major Chinese ports stood at 159.18 MnT by the end of this week against 158.58 MnT a week ago.
Coking coal prices dropped over slow demand from importing nations – Australian coking coal offers registered drop this week over slow demand from major importing nations like India and China
Currently,Premium HCC prices was assessed at around USD 215.50/MT FoB Australia,down by USD 17.25/MT against previous week.Last week the offers were heard at USD 232.75/MT FoB basis.
However, demand for Coking Coal in China is expected to return in near term when the curb on steel production mandated by the Chinese government will come to an end.Also, market sources shared that Indian mills are not holding higher inventories in hand and will start importing coal from Australia.
Chinese billet domestic offers fall significantly – Spot billet (150*150mm) prices in Tangshan stood at RMB 3,660/MT (including 17% VAT) in mid of the week which increased to RMB 3,660/MT towards the weekend.
However Chinese billet export offers are assessed at USD 550/MT FoB China.
Chinese HRC export offers rebound over domestic gains– Chinese HRC export offers have started to rebound amid gains in the domestic market towards the end of the week.However in the beginning of the week the prices were on lower side.
Currently Chinese HRC price assessment is in the range of USD 595-620/MT,FoB China. Last week the offers were in the range of USD 620-625/MT,FoB basis.Payment are made on letter of credit basis for 1,000-10,000 MT.
Meanwhile prices in the domestic market are gauged at RMB 3,970-4,010/M in Eastern China (up by RMB 20-30MT) W-o-W and RMB 3,950-3,980/MT Northern China
Also,Chinese manufacturers are anticipating further hike in HRC export offers prices by USD 5-10/MT ,if bullish sentiments continues to prevail in domestic market.
Chinese Re-bar export offers move down by USD 10/MT W-o-W – Chinese re-bar export offers reported fall by USD 10/MT on weekly basis.
Currently, nation’s re-bar export offers are at USD 565/MT on FoB basis.Last week the prices were heard at USD 575/MT FoB China.However deals have been concluded at USD 562/MT FoB basis.
Meanwhile prices in the domestic market are heard at RMB 3,790-3,850 in (Eastern China) and RMB 3,900-3,930 ( Northern China).
| Particulars | Currency | Current Prices per MT |
1 W | 1 M |
| Spot Iron Ore Fines Fe 62%, CNF China |
USD | 70 | 70 | 78 |
| Met Coke, 64%, FoB China | USD | 364 | 365 | 355 |
| Premium HCC,CNF China | USD | 219.5 | 237.5 | 228.5 |
| Chinese Domestic Billet, ex-works (150*150mm, including 17% VAT) |
RMB | 3,660 | 3,670 | 3,680 |
| Billet 150*150 mm, FoB China |
USD | 550 | 552 | 540 |
| Rebar, FoB China | USD | 565 | 575 | 553 |
| Wire Rod.FoB China | USD | 592 | 590 | 572 |
| Eastern China Domestic HRC Prices ex-Works |
RMB | 3,970-4,010 | 4,050-4,120 | 4,115 |
| HRC, FoB China | USD | 595-620 | 615 | 585 |
| CRC,FoB China | USD | 630 | 610 | 615 |
| Plate,FoB China | USD | 605 | 600 | 575 |
Source-SteelMint Research
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