At the end of this week,Chinese steel market has witnessed the drastic incident of fire breakout at Bengang Steel corporation. This resulted in surge in steel futures. Demand for high grade material continued to remain strong pushing up lump and pellet premiums.
Chinese spot iron ore prices increased marginally – Benchmark index in China for Fe 62% fines closed at USD 79/MT, CFR China by the weekend. Demand for high grade material (lump and pellets) remained strong amid hike in coking coal prices and sinter production cuts. Spot lump premium increased to USD 0.33/MT and pellet premium increased by USD 3/MT to USD 35.9/DMT, CFR China. Iron ore inventory at Chinese major ports fell by 0.1 MnT W-o-W to 133.35 MnT.
Surge in Coking Coal prices leads to thin buying among overseas buyers:Coking coal price jumped again by USD 5/MT,W-o-W basis which has lead to thin buying among oversesa buyers.The latest offer for the Premium HCC is assessed at USD 208.50/MT FoB Australia against USD 203.50/MT,FoB compared with previous week.
Chinese domestic billet prices rose towards the weekend – Chinese domestic billet prices increased from RMB 3,700/MT (ex-works) in beginning of the week to RMB 3,760/MT (ex-works) towards the weekend.
China’s HRC export offers rises amid uncertainty in domestic market –Chinese HRC export offers rise further by USD 5/MT, W-o-W basis owing to uncertainty in nation’s domestic market.Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 550-560/MT, FoB China.CRC export offers are in range of USD 600-605/MT,FoB China.Post fire incident at Bengang,Chinese steel futures for hot rolled coils went up by RMB 138/MT and are in range of RMB 4,204/MT.
Chinese Re-bar export offer decline over fall in domestic market.-Chinese re-bar export offers declined by USD 18/MT,W-o-W basis amid owing to fall of prices in the domestic market. As per the trade participants the market will start to pick up in near term as domestic market rebound on late Friday.The fresh export offers are heard in the range of USD 550/MT,FoB China.
Steel Raw Material & Finished Steel Prices in China
| Particulars | Currency | Current Prices |
1 W | 1 M |
| Spot Iron Ore Fines Fe 62%, CNF China |
USD | 79 | 78 | 74 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex works) |
RMB | 730 | 745 | 685 |
| Met Coke, 64%, FoB China | USD | 331 | 319 | 294.5 |
| Chinese Domestic Billet, ex-works |
RMB | 3,760 | 3,780 | 3,550 |
| Billet 150*150 mm, FoB China |
USD | 525 | 525 |
485 |
| HRC, FoB China | USD | 565 | 560 |
515 |
| CRC, FoB China | USD | 605 | 600 | 545 |
| Rebar, FoB China | USD | 550 | 568 | 493 |
Prices in USD/MT
Source:SteelMint Research
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