Steel prices in China’s domestic market are rallying up since Monday in tandem with clear message from policy makers in Beijing that the government would boost economic growth by increasing fiscal spending and monetary easing. The steel consumption outlook have become positive thereafter.
Along with HRC/CRC prices, plate export prices from China are also up by USD 25-30/MT. Current offers for plates of base size (16-20 mm) SS400 grade are being assessed at USD 300-305/MT, FoB China.
Post Chinese Lunar New Year Holidays (from Feb 7-13), steel demand has increased in China (Feb-May being the peak consumption season in China). However, due to production cutbacks, market players have low very inventories left which has led to increase in steel prices.
However as per market sources, this price surge is for short run and is only sentiments driven. While there is no fundamental improvement in effective demand for steel, boost is generated only by loosening of fiscal policies.
Indian Scenario
No firm offers for Chinese material is heard from India after MIP imposition as plates can only be imported at USD 500/MT.
However, SteelMint has heard that under advance license scheme POSCO-Korea has offered commercial grade plates at USD 340-350/MT, CNF India basis at Chennai port.
Domestic plates prices are currently unchanged at INR 28,000 (ex-works) against last week but are anticipated to increase by INR 500-700/MT in the coming week.
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