Chinese Steel Market Highlights – Week 30

Strong domestic demand and bullish market sentiments in China’s domestic market has compelled the Chinese mills to raise flat steel and re-bar export offers.Rise in domestic prices have also triggered the imported coking coal prices to move upwards in the global market.Iron ore fines (Fe 62%) index hit USD 70/MT and then closed at USD 67/MT, CFR China towards the weekend. China reported highest ever monthly crude steel output in Jun’17, assessed at 73.23 MnT,higher by 5.4% as compared to Jun’16 the same stood at 69.47 MnT.

Chinese spot iron ore prices hit USD 70/MT mark– Benchmark index in China for Fe 62% fines prices moved up this week further amid rising steel prices and hit USD 70/MT, CFR China and the declined to USD 67/MT by weekend. Iron ore inventory at Chinese major ports stood at 140.45 MnT. Lump premium moved up to USD 0.22/DMT, CFR China. Pellet premium fell to USD 30/DMT, CFR China.

Coking Coal Price Rises on strong buying by Chinese steelmakers-Hike in Chinese domestic prices has pushed the steel makers to scale up imports of coal for daily consumption as well as for restocking the material.This has substantially strengthened the demand for the coal in the global market resulting to surge in the imported coking coal prices.

The latest offer for the Premium HCC is assessed at USD 168.25/MT FoB Australia higher by USD 4.25/MT compared with USD 153/MT,last week.

Chinese domestic Billet offers rise further – Chinese domestic billet prices moved up from last week’s assessment of RMB 3,400/MT to this week’s assesment of RMB 3,470/MT. Billet prices are witnessing hike owing to improved demand and billet shortage in global market.

China’s flat steel export offers rose sharply by USD 75/MT over last six weeks-Chinese HRC export offers increased sharply by USD 75/MT over last six weeks owing to strong demand experienced in the domestic market. This week Chinese exporters have raised offers again by USD 3-20/MT.

HRC export offers are prevailing in the range of USD 480-510/MT, FoB China. Meanwhile prices of HRC in domestic market are heard in the range of RMB 3,780-3,800/MT (ex-works). Chinese CRC export offers are in range of USD 520-535/MT, FoB basis.

Chinese Re-bar export offer rises further amid domestic gains- Chinese re-bar export prices rises marginally by USD 5/MT, W-o-W basis and the fresh offers are heard around USD 480-485/MT, FoB China.Current spot prices are evaluated in East China, Shanghai at RMB 3,770/MT (USD 558) and North China, Beijing at RMB 3,790/MT (USD 561) on weekly basis.

Steel Raw Material & Finished Steel Prices in China

Prices per metric tonne
Source-SteelMint Research