Chinese iron & steel market witnessed volatility in week 17, 2017. After undergoing price decline in 1st half of the week, prices gained some strength in 2nd half of the week amid rebound in steel futures.
Spot iron ore prices gained some strength towards the week end – Owing to weak trading activities, spot iron ore fines (Fe 62%) index fell to USD 62/MT, CFR China on 18th Apr’17. However, prices started picking up slowly and yesterday (i.e. on 21 Apr’17) it closed at USD 67.4/MT, CFR China. With thin buying activities noticed from steel mills to continue running their production, spot iron ore market gained some strength.
On the other hand, China domestic concentrate prices drifted downwards by RMB 110/MT W-o-W and hit almost 18 month low. It is to be noted that China’s crude ROM production jumped 23% M-o-M in Mar’17 and stood at 113.6 MnT. Thus China’s increased iron ore output seems to pressurize domestic concentrate prices.
Coal prices to come down over improved supply – Spot price of Premium HCC have come down to USD 263.4/MT FoB Australia post ease in supply after resumption of rail movements from Australia. Met Coke 64%, export offers are at USD 315/MT, FoB China unchanged against last week.
Domestic billet prices in China inch up on improved trades – Domestic billet prices in China which fell to RMB 2,690/MT towards the mid of this week, increased to RMB 2,780/MT by the end of this week.
Finished steel export prices dropped further – Chinese HRC export prices declined further by USD 30/MT W-0-W and stood at USD 415-420/MT, FoB China. Chinese CRC export offers also fell to USD 450-460/MT, FoB China. Inventory pressures in domestic market compelled Chinese steel makers to reduce offers and secure orders from overseas buyers for June shipments. Chinese Rebar export offers also slumped by USD 15/MT on weekly basis.
Domestic steel prices in China regain sharply – Domestic steel prices in China rebounded yesterday. Prices rose by around RMB 100/MT D-o-D amid strengthening paper market. Domestic HRC prices in eastern China was assesed at RMB 2,960-2,990/MT (ex-works).
Steel Raw Material & Finished Steel Prices in China:
|
Particulars |
Currency | Current Prices | 1W |
1M |
| Spot Iron Ore Fines Fe 62%, CNF China | USD | 67 | 68 | 84 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex-works) | RMB | 580 | 690 | 870 |
| Met Coke, 64%, FoB China | USD | 315 | 315 | 271.5 |
| Chinese Domestic Billet, ex-works | RMB | 2,780 | 2,890 | 3,250 |
| Billet 150*150 mm, FoB China | USD | 385 | 430 | 450 |
| HRC, FoB China | USD | 415-420 | 440-445 | 495 |
| CRC, FoB China | USD | 450-460 | 470-480 | 560 |
| Rebar, FoB China | USD | 420 | 435 | 458 |
Prices mentioned are on per tonne basis
Source: SteelMint Research
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