Domestic steel prices in China went up in the month of Nov’17 amid hike in steel futures and new production cuts announced for Tangshan. Major steel makers like Baosteel and Wuhan Steel rolled over flat steel prices for Dec’17 deliveries. Iron ore prices remained on the higher side supported by hike in steel prices.
Rebar and HRC export offers from China were low towards the beginning of the month, but later towards the 2nd half export offers picked up momentum.
1.Coking coal prices climbed by 4% M-o-M-In Nov’17 Coking coal monthly average prices reached to USD 193/MT FoB Australia against USD 185/MT FoB basis in Oct’17 owing to tight supply of cargoes due to congestion in the major coal handling port terminals in Australia.Also arrival of winter season in Australia contributed in rise coking coal prices.
2.Iron ore prices shoot up by 5% M-o-M in Nov’17-In the month of Nov’17 iron ore prices assessed at USD 64/MT CNF China which was at USD 61/MT CNF basis in Oct’17.Global iron ore prices remained on the higher side supported by high steel prices.
3.Domestic billet prices witness surge in Nov’17- Domestic billet prices witness the hike in the month of Nov’17 by 5% on monthly basis.In Nov’17 average prices of billet 150*150mm, Q235 in China’s domestic market stood at RMB 3,784/MT (ex-Tangshan) which was at RMB 3,617/MT ((ex-Tangshan).However billet export offers also surged by 4% M-o-M basis to USD 527/MT FoB China in Nov’17.
4. Domestic Re-bar prices spiked by 7% in Nov’17-Domestic re-bar monthly average prices in China spiked by 7% in Nov’17 to RMB 4,148/MT (Eastern China ex-warehouse) in comparison to RMB 3,879/MT (Eastern China ex-warehouse) in Oct’17.Although re-bar and wire rod export offers from China showed the marginal rise in Nov’17.
5. Flat Steel export prices rebound in 2nd half of Nov’17-Chinese average HRC export offers started to rebound and stood at the levels of USD 550-560/MT FoB China in Nov’17 and was at similar levels in the month of Oct’17.However domestic HRC prices on an average basis rose slightly by 1% in Nov ‘17 to RMB 4,083/MT Eastern China (ex-warehouse).
China: Iron & steel prices – Nov’17 vs Oct’17
| Commodity | Delivery | Size/Grade | Unit Prices | Oct’17 | Nov’17 | M-o-M (%) |
| Coking Coal | FoB Australia | Premium HCC | USD/MT | 185 | 193 | 4.3% |
| Iron ore | CNF China | Fines, 62, | USD/MT | 61 | 64 | 5% |
| Australia | ||||||
| Pig Iron | Del Warehouse | Steel grade, L10 | RMB/MT | 2,800 | 2,800 | 0 |
| Billet | Ex-Tangshan | 150*150mm, Q235 | RMB/MT | 3,617 | 3,784 | 5% |
| Billet | FoB China | 150*150mm, Q235 | USD/MT | 507 | 527 | 4% |
| Rebar | Eastern China (ex-warehouse) | 16-25mm, HRB 400 | RMB/MT | 3,879 | 4,148 | 7% |
| Rebar | FoB China | Commercial | USD/MT | 530 | 532 | 0.30% |
| Wire rod | FoB China | 6.5mm | USD/MT | 560 | 563 | 1% |
| HRC | Eastern China (ex-warehouse) | 2.75mm, Q235/ | RMB/MT | 4,044 | 4,083 | 1% |
| SS400 | ||||||
| HRC | FoB China | 2.5mm SS400 | USD/MT | 560 | 558 | 0.3% |
| CRC | FoB China | 1.0mm SPCC | USD/MT | 600 | 593 | 1.1% |
| Plates | FoB China | 5-10mm, SS400 | USD/MT | 540 | 535 | 1% |
Above mentioned prices are on monthly average basis
Source-SteelMint Research
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