China Steel Market Highlights : Week 16, 2017

The week witnessed further drop in iron ore prices and steel prices. Major Chinese steel mills announced price cuts for May deliveries. Chinese finished steel export as well as domestic offers also plunged this week amid weak buying interest from domestic and overseas buyers.

Spot iron ore prices down by USD 7/MT W-o-W – Downside in Chinese spot iron ore prices continued this week too. Prices fell further by USD 7/MT W-o-W. Fe 62% fines index closed this week at USD 68/MT, CFR China. Decline in iron ore & steel futures resulted in drop in spot prices as well as domestic iron ore prices in China.

Iron ore inventory at Chinese major ports stood at 130.4 MnT on 14 Apr’17, slightly down by 0.7% W-o-W.

Coal prices hike post disruption of transport infrastructure owing to Debbie cyclone – Coking coal prices in China shot up post interim disruption in supply owing to Debbie cyclone in Australia. Met coke prices in China increased by USD 28/MT W-o-W in Week 16.

Domestic billet prices in China fall further – Domestic billet prices in China declined on weekly premises. However towards the weekend, prices moved up marginally over improved trade activities. Chinese billet export offers have declined by USD 10-15/MT, W-o-W.

Chinese finished steel export offers dropped significantly – Prevailing bearish sentiments and weak demand from domestic and overseas buyers compelled major Chinese steel makers namely – Baosteel, Wuhan Steel and Angang to cut steel prices for May deliveries. Inventory pressures pulled down Chinese HRC export offers o USD 440-445/MT, FoB China.

On similar lines, export offers for Rebar fell to USD 435/MT in week 16 against USD 440-445/MT a week earlier.

Steel Raw Material & Finished Steel Prices in China:

Prices mentioned are on per tonne basis
Source: SteelMint Research