Chinese Steel Market Highlight – Week 22,2018

This week Chinese steel prices moved in upward direction over strong futures. Domestic prices witness surge in prices. However export offers continued to remain on lower side.

Flat steel export offers remained stable and re-bar export offers inched up marginally.Chinese billet export offers move downwards.Coking coal offers moved up marginally.Spot iron ore prices also witness uptrend this week.

Chinese mills increase focus on high grade iron ore – Chinese mills have increased preference for high grade Brazilian iron ore compared to Australian ore. Fe 62% fines index increased slightly towards week close Spot lump premium was assessed at USD 0.1837/MT, CFR and pellet premium fell slightly to USD 53.11/MT, CFR China.

Coking coal offers inched up slightly – Seaborne coking coal prices inched up slightly amid improved demand with the resumption of full-fledged construction activity in China.

Meanwhile supply disruption due to logistical issues in Australia’s Queensland coal belt is pushing the fuel prices further which in turn increases coking coal prices.

Currently, Premium HCC prices were assessed at around USD 188/MT FoB Australia.Last week the offers were heard around USD 184.75/MT.

Chinese billet export offers fell sharply- Billet export offers from China declined sharply to USD 535/MT, FoB down by around USD 10/MT W-o-W. Domestic billet prices in China rebounded to RMB 3,730/MT (incld 17% VAT) for Q235 billet in Tangshan by week close.

Chinese HRC export offers remain stable this week – Chinese HRC export offers remain stable despite gains in domestic market.Nation’s HRC export offers remain stable on W-o-W basis despite gains in the domestic market.Strong futures lead to rise in domestic prices in China.

However HRC export offers remain steady and currently heard around USD 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 around USD 600/MT,FoB China.

Prices of HRC in the domestic market are gauged at RMB 4,280-4,300/MT (ex-works) in Eastern China and 4,180-4,200 /MT in (Northern China).

Chinese Re-bar exports offers moved up marginally – Nation’s re-bar export offers moved up marginally this week by USD 5/MT owing to increase in domestic prices.

Currently, nation’s re-bar export offers are at USD 550/MT FoB China. However last week the offers are assessed around USD 545/MT FoB basis.

Meanwhile prices in the domestic market on D-o-D basis are heard at RMB 4,000-4,050/MT in (Eastern China) and RMB 3,900 – 3,940/MT in (Northern China).

Chinese Iron and Steel Prices Week 22,2018

Source-SteelMint Research