After hike in Chinese iron ore & steel prices early this week, prices witnessed sharp plunge towards the weekend. Domestic steel prices in China crashed badly following which iron ore prices also collapsed.
Chinese iron ore prices plunge to 8 months low – Fe 62% fines index towards the beginning of the week was assesed at USD 68/MT, CFR China. By the weekend it tumbled to hit 8 month’s low USD 59.5/MT, CFR China. Chinese steel mills did not show much interest in booking seaborne cargoes and kept away from holding high inventories as few steel mills in China are anticipating production cut ahead conference to be held in Beijing on 14-15 May’17.
On 05 May’17, iron ore stock at Chinese major ports was recorded at 136.5 MnT up by 2.5% W-o-W. Lump premium moved up to USD 0.0045/DMT, CFR China. Pellet premium increased to USD 15.75/DMT, CFR China, up 11% W-o-W.
Coking coal prices slide further – Coking coal prices of Australian Premium HCC dropped to USD 232/MT, FoB Australia after rail lines from Queensland region of Australia connecting coal mines to ports resumed full fledged operations.
Chinese domestic billet prices weaken further – Domestic billet prices in China declined by about RMB 50/MT W-o-W to RMB 2,920/MT (ex-works).
Domestic steel prices in China plunge on selling pressure; export offers rose marginally – Domestic rebar prices in China dropped by RMB 80/MT W-o-W. Selling pressure was seen amongst steel mills in order to prevent from losses over further price decline. Apart from this, decline in futures and limited trading activities resulted in price fall. Rebar prices in eastern China stood at RMB 3,260-3,300/MT (ex-works) in eastern China. Similarly domestic HRC prices in China weakened by RMB 190/MT to RMB 2,950/MT (ex-works).
HRC export offers from China moved up this week and were seen in the range of USD 425-440/MT, FoB China. Similarly Chinese rebar export offers increased by USD 5-10/MT W-o-W to USD 420-425/MT, FoB China. After sharp decline in domestic steel prices, there are chances that export offers may also go down in the coming week.
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 | 59.5 | 68 | 75 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex-works) | RMB | 690 | 650 | 820 |
| Met Coke, 64%, FoB China | USD | 312 | 315 | 286.5 |
| Chinese Domestic Billet, ex-works | RMB | 2,920 | 2,970 | 3,140 |
| Billet 150*150 mm, FoB China | USD | 420 | 380 | 435 |
| HRC, FoB China | USD | 425-440 | 420-425 | 480 |
| CRC, FoB China | USD | 460 | 450-460 | – |
| Rebar, FoB China | USD | 420-425 | 412 | 445 |
Prices mentioned are on per tonne basis
Source: SteelMint Research
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