Major Chinese steel makers namely – Baosteel, Wuhan Steel and Angang announced price cut this week in flat steel products for June deliveries amid prevailing bearish sentiments. Iron ore prices remained unchanged this week amid limited trades. Easing coking coal supplies from Australia pulled down coal prices further.
Chinese spot iron ore prices remained unaltered amid dull trades – Fe 62% fines index in China remained range bound this week and stood at USD 59.5-60.5/MT, CFR China. With drop in iron ore futures and dull trades, spot iron ore index remained stable.
Iron ore inventories at Chinese major ports remained on the high side. On 12 May’17, iron ore stock at Chinese major ports was recorded at 136.83 MnT up by 0.5% W-o-W. Strict environmental checks over upcoming summit in Beijing pushed up lump & pellet premium. Lump premium moved up to USD 0.05/DMT, CFR China. Pellet premium increased to USD 19.75/DMT, CFR China.
Coking coal prices slide further – Coking coal prices of Australian Premium HCC dropped to USD 178/MT, FoB Australia after coking coal exports picked up from Australia over resumption of full fledged operations at the ports in Queensland region.
Chinese billet export offers fall further on limited trades – Chinese billet export offers dropped by USD 15/MT W-o-W and remained at USD 420-425/MT, FoB China. Market sources expect prices to drop further. Domestic billet prices in China were seen at RMB 2,950/MT (ex-works).
China’s major flat steel makers cut prices for June deliveries – China’s major flat steel producers – Baosteel, Wuhan Steel slashed flat products prices for June deliveries. Domestic rebar prices in China moved up slightly towards the beginning of the week on slight gain in domestic billet, however in the later half of the week prices remained flat amid fall in steel futures and weak demand. Rebar prices in eastern China stood at RMB 3,340-3,390/MT (ex-works) in eastern China.
HRC export offers from China dropped marginally this week and were seen in the range of USD 420-430/MT, FoB China. Chinese rebar export offers remained stable this week at USD 420-425/MT, FoB China.
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 | 60 | 68 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex-works) | RMB | 690 | 690 | 720 |
| Met Coke, 64%, FoB China | USD | 300 | 312 | 315 |
| Chinese Domestic Billet, ex-works | RMB | 2,950 | 2,920 | 2,910 |
| Billet 150*150 mm, FoB China | USD | 400-405 | 420 | 420 |
| HRC, FoB China | USD | 420-425 | 425-435 | 480 |
| CRC, FoB China | USD | 450-460 | 460 | 480 |
| Rebar, FoB China | USD | 420-425 | 420-425 | 440 |
Prices mentioned are on per tonne basis
Source: SteelMint Research
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