Chinese Steel Market Highlights- Week 20, 2018

This week Chinese steel prices remained primarily stable with HRC export offers edging up by USD 5/MT W-o-W. Domestic steel prices also edged up. However prices in the export market remain largely stable with flat steel export offers inched up marginally. Iron ore prices remain range bound and Coking coal offers remain steady this week. Inventories of rebar & wire rod stood at 2.51 MnT, down by 0.04 MnT against previous week.

China – world’s largest steel producer has registered growth of about 4% in crude steel output at 76.70 MnT Apr’18 in comparison to 73.98 MnT in Mar’18. During first four months of CY18 (Jan-Apr) China produced 287.48 MnT of crude steel,higher by 5.2% against 273.53 MnT in Jan-Apr’17.

Chinese spot iron ore prices remain range-bound – China spot iron fines prices remained range-bound throughout the week and kept hovering in the range of USD 67-68/MT, CFR China.Amid thin trade activities,iron ore prices remained stable. Iron ore stocks at Chinese major ports stood at 158.98 MnT, down by 1.05 MnT W-o-W.

China’s crude iron Ore production was down 35% Y-o-Y in Apr’18. According to National Bureau of Statistics, China has produced 257.82 MnT crude iron ore during Jan-Apr’18.

The production has declined by 36% compared to 298.19 MnT in the same period last year.

Coking coal offers stable over improved demand from Chinese steelmakers- Seaborne coking coal prices remain moderated this week post hike by 8.50/MT in the last week.

Higher production amid improved consumption in India and China may lead to increase in coking coal prices in near term.

Meanwhile disruptions in Australia’s Queensland coal belt—one of the world’s major coal producing region may push fuel prices on higher side.

Currently,Premium HCC prices was assessed at around USD 184.50/MT FoB Australia.Last week the offers were heard at USD 187.50/MT FoB basis.

Domestic billet prices in China moved up throughout the week- Domestic billet prices in China increased throughout the week from RMB 3,660/MT (incld 17% VAT) for Q235 billet in Tangshan to RMB 3,690/MT. Chinese billet export price assessment remained stable at USD 540-550/MT, FoB China.

Chinese HRC export offers rose marginally- Nation’s HRC export offers rose marginally by USD 5/MT on weekly basis over higher prices in domestic market.

Currently Chinese HRC price assessment is in the range of USD 585-590/MT,FoB China.Payment are made on letter of credit basis for 1,000-10,000 MT.

Major mills in China were offering HRC export offers in the range of USD 600-605/MT,FoB China.

Prices of HRC in the domestic market are gauged at RMB 4,250-4,270/MT (ex-works) in Eastern China and 4,090-4,110 /MT ( Northern China).

Chinese Rebar export offers remain unchanged-Nation’s re-bar export offers remain largely stable amid weakening prices in domestic market

Currently,nation’s re-bar export offers are at USD 550-552/MT FoB China.However trade deals have been concluded at lower prices of USD 545-555/MT FoB basis.

Major mills are offering rebar export offers to be around USD 575/MT FoB basis.

Meanwhile prices in the domestic market are heard at RMB 3,970-4,020/MT in (Eastern China) and RMB 3,900 – 3,970/MT in (Northern China).

Chinese Iron and Steel Prices Week 20

Source-SteelMint Research