China Market Highlights: Week 16 (11 Apr – 17 Apr)

While iron ore prices in China observed fluctuations during the week, billet and HRC prices surged considerably against previous week

Iron Ore

With the start of week 16, global iron ore prices increased by USD 5/MT W-o-W amid strengthening steel prices in China. Bullish sentiments in country’s domestic steel market supported iron ore buying resulting which global iron ore prices moved up. Index for Fe 62% fines stood near USD 60/MT, CFR China.

However, in latter half of the week, iron ore prices fell down by USD 3-4/MT and stood at USD 56/MT, CFR China amid thinning trade.

China’s iron ore imports increased by 16.4% M-o-M basis from 73.6 MnT in Feb’16 to 85.7 MnT in Mar’16.

Billet

Chinese billet prices upsurged by by RMB 90/MT (USD 14/MT) to RMB 2,170/MT (USD 334/MT) against previous week price of RMB 2,080/MT (USD 320/MT).

Lack of billet inventory levels with finished steel manufacturers coupled with peak construction activity season has supported billet prices in local market. On Friday, billet was traded at RMB 2,210/MT (USD 341/MT), ex-Tangshan, prices include VAT of 17.5%.

HRC

With the start of week 16, China’s domestic HRC prices also increased by RMB 107/MT (USD 17/MT) following increase in country’s billet prices. Domestic HRC in China is being traded at RMB 2,750-2,800/MT (USD 425-433/MT), ex-Shanghai, including VAT of 17%. China’s HRC export offers are assessed at USD 395-400/MT, FoB China basis, up by USD 20/MT against last week.

China’s total steel exports surged by 23% from 8.11 MnT in Feb’16 to 9.88 MnT in Mar’16.