China Steel Market Highlights- Week 25,2018

This week Chinese steel prices remain largely stable post Dragon Boat festival schedule in end of last week.Flat steel and rebar export offers inched up marginally. Shagang Steel raised rebar & wire rod prices by RMB 100/MT for late Jun’18. Coking coal prices remained stable amid low purchase from Chinese buyers. Iron prices witnessed fall following decline in futures.

Chinese spot iron ore prices fell sharply in week beginning – Chinese spot iron ore prices fell sharply on decline in futures in week’s beginning. Fe 62% fines assessment fell from USD 63.85/MT, CFR China in mid of the week. Later towards the week end prices inched up to USD 64-65/MT, CFR China.

Spot lump premium moved up sharply and was assessed at USD 0.23/MT, CFR. Emision cuts in China has boosted demand for iron ore lump & pellets. Spot pellet premium was assessed at USD 57.6/MT, CFR China.

Coking coal offers remain unchanged amid halt in buying activity from China- Coking coal prices remain stable this week as the Chinese buyers have halt their purchases as they are waiting to have clarity on supply from Australia.However logistical constraints from Australia may lead to fall in prices in near term.

Although supply disruption of Australian metallurgical coal would be resolved soon since rail freight operator Aurizon has offered to resume its normal services on the Central Queensland Coal Network.

Thus currently,Premium HCC prices were assessed at around USD 200/MT FoB Australia unchanged from previous week.

Domestic billet prices remain range bound – Billet prices in China’s domestic market remained range-bound this week. Price assessment stood at RMB 3,670/MT (incld 17% VAT) billet in Tangshan by week close against RMB 3,690/MT in week’s beginning. No offers for billet export were heard but assessment stands at USD 540-545/MT, FoB.

Chinese HRC export offer inched up marginally – Nation’s HRC export offers inched up slightly on weekly basis post Dragon boat festival.

However domestic prices witness increase over strong futures. Prices of HRC in the domestic market are gauged at RMB 4,260-4,280/MT (ex-works) in Eastern China and 4,200-4,220 /MT ( Northern China).

Currently Chinese HRC export offers heard around USD 595-610/MT,FoB China.Payment are made on letter of credit basis for 1,000-10,000 MT.

Offers from major Chinese mills are assessed at around USD 600-610/MT,FoB China.

However arrival of early monsoon may affect domestic demand in China.

Chinese Rebar exports offers moved up slightly-Nation’s re-bar export offers moved up slightly on weekly basis.

Currently,nation’s re-bar export offers are at USD 554/MT FoB China. However last week the offers are assessed at USD 550-551/MT,FoB Black sea.

Bids from buyers continued to remain flat at USD 540-545/MT,FoB basis.Meanwhile prices in the domestic market are heard at RMB 4,040-4,080/MT in (Eastern China) and RMB 3,880-3,930/MT in (Northern China).

Chinese Iron and Steel Prices Week 25,2018

Source – SteelMint Research