China Market Highlights This Week: 14 Mar – 20 Mar’16

Domestic price of raw material, semi-finish and finish steel in China dropped marginally this week against previous week amid uncertainty in the market.

Billet

In the first half of this week, domestic billet prices in China plummeted further following the drastic ups and downs in billet prices the previous week. Market participants were in selling mode in order to cash in amid uncertain market outlook.

However, in latter half of the week, prices recovered as buying interest surged due to the anticipated production cuts with upcoming International Horticultural Expo in Tangshan, a major steel producing city in China.

On Friday, billet traded at RMB 1,910/MT (USD 295/MT), (ex-Shanghai) while last week it was traded at USD 2,020 (USD 310/MT).

Iron ore

Following billet’s price movements, iron ore prices in China also fluctuated during the week. In the first half, prices dipped by USD 4-5/MT followed by hike once again on Friday amid increased billet prices.

Last week, seaborne iron ore prices surged significantly by about USD 12/MT retreated by USD 5/MT closed at USD 58/MT. This week prices further dipped by USD 4-5/MT in the first half but on Friday again recovered by USD 3-4/MT. Thus, on Friday global iron ore prices for Fe 62% Australian fines are heard at USD 56/MT, CFR China against USD 58/MT last week.

HRC

HRC prices also fell in the first half of the week followed by hike in prices in latter half amid robust buying. Market participants in China are hopeful of further prise rise in the coming week.

HRC prices in Shanghai traded remained at same level against last week as the same was traded at RMB 2,380-2,420/MT (USD 365-371/MT) this week and at RMB 2,400-2,450/MT (USD 368-376/MT) (ex-Shanhgai), last week.

China’s crude steel output fell by 6% in first two months of year 2016, Jan-Feb at 121.07 MnT against the corresponding period of previous year.

W-o-W Price Analysis in China

Source: SteelMint Research
Changes per MT