China Steel Market Highlights-Week 52

Baosteel & Wuhan Steel raised domestic flat steel prices for Jan’18 deliveries.Major mills in China announced flat steel export offers for Jan’18 deliveries. Chinese rebar export offers also observed hike. Seaborne iron ore prices in China increased sharply.

Global Coking coal with rising prices and strong demand rules the market amid limited availability of cargoes ahead of winter holidays in Australia.

Seaborne iron ore prices rose sharply –Seaborne iron ore prices in China increased on steel gains. Fe 62% fines prices closed to USD 76/MT, CFR China towards the weekend.

Spot lump premium fell amid softening demand in seaborne lump market and increased stock of lump at Chinese major ports.

Lump premium declined and stood at USD 0.0875/MT. Pellet premium declined by USD 3/MT to USD 43/DMT, CFR China

Iron ore inventory at Chinese major ports have further increased this week by 0.36 MnT to 146.2 MnT. Domestic iron ore prices in China increased marginally on weekly premises.

Coking coal prices ascends further over limited supply from Australia –There is no incremental production ahead of the winter holidays in Australia which will began on 20 Dec’17 and extended to 8 Jan’18. During the holidays, there will be no mining activity, and hence no supply of the coal.

Also,due to maintenance activity at the Dalrymple Bay Coal Terminal (DBCT) of Australia vessels are being delayed .This contributes to surge in coking coal prices.

On the other hand, demand from the importing countries like India and Japan is rising which pushes the prices of coking coal on higher side.

Currently Premium HCC prices was assessed at around USD 246/MT FoB Australia, moved up by USD 9.5/MT compared to USD 236.50 /Mt in previous week.

Chinese billet export offers remain unchanged – Chinese billet export offers remained stable this week and are assessed around USD 555/MT,FoB China. Previously billet export offers was heard at similar levels only.

However prices in the domestic market was gauged at RMB 3,980/MT (ex-works, including VAT) in northern China in the beginning of the week which started falling and was assessed at RMB 3,880/MT (ex-works, including VAT).

Major mills in China announced flat steel offers for Jan’18 deliveries-Major mills in China have announced their fresh HRC export offers amid fluctuation in futures and volatility experienced in nation’s domestic market. Major mills in China like Benxi iron & steel and Rizhao iron & steel mills are offering in the range of USD 585-590/MT FoB basis mills are reluctant to negotiate the offers with overseas buyers.

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 575-580/MT,FoB China.Last offers were heard in the range of USD 570/MT on FoB basis.

Baosteel & Wuhan Steel have raised domestic flat steel prices for Jan’18 deliveries.

Prices of HRC in domestic market moved up by RMB 30/MT and are hovering in the range of RMB 4,300-4,330/MT (Eastern China) and RMB 4,270-4290/MT including VAT & other taxes.

Chinese Re-bar export offers moved up by USD 10/MT-Chinese Re-bar export offers continued to move up further by USD 10/MT W-o-W basis.

Currently nation’s re-bar export offers are at USD 570MT on FoB basis.Previously it was assessed in range of USD 560/MT FoB basis.

However markets participants are expecting that buyers may conclude the deals at USD 560-580/MT FoB basis amid increased prices of re-bar in other countries as well.

Steel Raw Material & Finished Steel Prices in China

Source-SteelMint Research