China Steel Market Highlights – Week 24,2018

This week Chinese steel prices increased in the beginning of the week with major steel mills raising offers. However prices remained stable ahead of three day Dragon boat festival which is scheduled on 18th June.

Baosteel has raised Hot rolled coil prices for the month of July by Yuan 100/MT (USD 16/MT) after keeping it unchanged in last two months.

Meanwhile flat steel export offers inched up marginally.Re-bar export offers remain stable.Chinese spot iron ore prices moved up throughout the week. Coking coal prices continues to spurt over supply disruptions in Australia.

According to National Bureau of Statistics (NBS) China’s crude steel output recorded the increase of 6% in May’18 against previous month. In May’18 nation produced 81.13 MnT of crude steel in comparison to 76.70 MnT in Apr’18.

During first five months of CY18 (Jan-May) China produced 368.61 MnT of crude steel,higher by 7% against 345.79 MnT in Jan-May’17.

Chinese spot iron ore prices increase – Chinese spot iron ore prices moved up throughout the week amid increased demand for low alumina containing fines. Fe 62% fines assessment increased from USD 65.7/MT, CFR China in the beginning of the week to USD 66/MT, CFR China by week close. Iron ore stock at Chinese major ports fell by 2.35 MnT W-o-W to 158.68 MnT this week.

Spot lump premium moved up sharply and was assessed at USD 0.20/MT, CFR. Rainy weather in China has boosted demand for iron ore lump. Also demand for pellets turned strong and few Indian exporters have reported to have concluded deals this week.

Coking coal offers continues to spurt amid supply disruption –Seaborne coking coal prices continues to surge amid ongoing service disruptions on the Goonyella rail system in the Australian state of Queensland.

Almost 13 million metric tons (MMT) of coking coal from Australia would be affected this year due to the disrupted supply.

Thus amid higher prices Chinese buyers have halted their coal purchases and are waiting for prices to rebound in near term.

Currently,Premium HCC prices were assessed at around USD 200/MT FoB Australia.However,last week coking coal prices stood at 197/MT FoB basis.

Domestic billet prices edge up – Billet prices in China’s domestic market continued its increase this week too. Price assessment stood at RMB 3,790/MT (incld 17% VAT) for Q235 billet in Tangshan by week close against RMB 3,730/MT in week’s beginning. No offers for billet export were heard but assessment stands at USD 540/MT, FoB.

Chinese HRC export offer inched up marginally – Nation’s HRC export offers inched up slightly by USD 5-10/MT on W-o-W basis.However domestic prices remain stable ahead of three day Dragon boat festival.

Currently Chinese HRC export offers heard around USD 595-610/MT,FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT.

Major mills in China have kept their export offers largely stable and are quoting HRC at around USD 600-610/MT,FoB China.However bids are happening on lower side which is around USD 585-595/MT FoB basis.

Prices of HRC in the domestic market are gauged at RMB 4,310-4,320/MT (ex-works) in Eastern China and 4,240-4,250 /MT (Northern China).

Chinese Re-bar exports offers remain steady-Nation’s re-bar export offers remain steady amid weak trading.

Currently,nation’s re-bar export offers are at USD 553/MT FoB China. However last week the offers are assessed at similar range.Bids from buyers continued to remain flat at USD 540-545/MT,FoB basis.

Meanwhile prices in the domestic market are heard at RMB 4,140-4,180/MT in (Eastern China) and RMB 3,950-3,980/MT in (Northern China).

Chinese Iron and Steel Prices Week 24,2018

Source-SteelMint Research