This week turned out to be optimistic in terms of domestic market sentiments for Chinese steel industry. Domestic iron ore, billet and finished steel prices in China observed northwards movement amid rise in futures.
Chinese spot iron ore prices remain range bound- Limited trade activities in China, kept spot iron ore prices intact this week. Fe 62% fines index kept hovering between USD 65-68/MT, CFR China. Buying interest for seaborne material remained thin ahead weekend holidays with limited trade deals getting concluded.
On 28 Apr’17, iron ore stock at Chinese major ports was recorded at 130.55 MnT marginally up by 0.7% W-o-W. However there was decline seen in lump inventories following which lump premium moved up to USD 0.039/DMT, CFR China. To the contrary, pellet premium inched down to USD 14.25/DMT, CFR China.
Seaborne coking coal supply eases, prices fall – With reopening of Goonyella rail line, coal transportation to few export terminals in Australia eased out. After which, coking coal prices of Australian Premium HCC dropped to USD 240/MT, FoB Australia.
Chinese billet domestic as well as export offers witness increase – Domestic billet prices in China strengthened by RMB 190/MT W-o-W. On similar lines, Chinese billet export offers also increased by USD 10/MT W-o-W to USD 390-400/MT, FoB China.
Domestic steel prices in China rise amid strengthening futures – Domestic HRC prices in China moved up by RMB 220/MT, W-o-W to RMB 3,140-3,170/MT (ex-works). Prices gained momentum on the back of strengthening steel futures. Chinese HRC export offers also rose marginally by USD 5-10/MT W-o-W on gains in domestic market.
Similarly, rebar prices in China’s domestic market increased to RMB 3,340-3,370/MT against RMB 3,200-3,230/MT in the beginning of this week. However Chinese rebar export offers declined by USD 5-10/MT W-o-W amid dull buying interest.
Steel Raw Material & Finished Steel Prices in China:
|
Particulars |
Currency | Current Prices | 1W |
1M |
| Spot Iron Ore Fines Fe 62%, CNF China | USD | 68 | 67 | 79 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex-works) | RMB | 650 | 580 | 820 |
| Met Coke, 64%, FoB China | USD | 315 | 315 | 271.5 |
| Chinese Domestic Billet, ex-works | RMB | 2,970 | 2,780 | 3,120 |
| Billet 150*150 mm, FoB China | USD | 390-400 | 380-390 | 438 |
| HRC, FoB China | USD | 420-425 | 415-420 | 485 |
| CRC, FoB China | USD | 450-460 | 455 | 535 |
| Rebar, FoB China | USD | 410-415 | 420 | 445 |
Prices mentioned are on per tonne basis
Source: SteelMint Research
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