This week Chinese steel market showed marginal uptick in export offers amid increase in domestic market and gains in futures market. Bullish sentiments in domestic market lead to marginal rise in export offers from China. Flat Steel and rebar export offers inched up slightly.Also raw material prices like iron ore prices showed uptrend in prices.Meanwhile coking coal offers decline further amid excess supply and low demand from importing nations.
Chinese spot iron ore prices increased sharply amid gains in future market – China spot iron fines prices increased from USD 64.05/MT, CFR China in the beginning of the week to USD 68.3/MT, CFR by Thursday. However towards the week close, the price fell to USD 66.85/MT, CFR China. Prices increased amid gains in futures market. Ferrous futures increased by 6.5% against previous day. On monthly basis, China iron ore imports increased marginally by 2% to 85.79 MnT in Mar’18 against 84.27 MnT in Feb’18, however, on per day basis it was lower in Mar’18.
Spot pellet premium assessed at USD 42/MT, CFR China. Spot lump premium was assessed at USD 0.165/DMT, CFR China.
Coking coal offers decline further over excess supply amid weak demand-Australian coking coal offers decline further this week by USD 6/MT owing to excess supply coupled with weak demand from major importing nations.
Meanwhile mills in China are also postponing their purchases and waiting for the coal prices to decline further amid lackluster demand in China.
Chinese billet export offers are heard around USD 520/MT, FoB.
Chinese HRC export offers inched up marginally- China’s HRC export offers remained firm in the beginning of the week over limited trades. But rising trend in domestic market lead to marginal rise in export offers by USD 5/MT by the end of the week.
Currently Chinese HRC price assessment is in the range of USD 585-595/MT,FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT.Last week the offers was heard in the range of around USD 585-605/MT .
Prices of HRC in the domestic market are gauged at RMB 4,020-4,040/MT (ex-works) in Eastern China and at RMB 3,830-3,950/MT in Northern China.
Chinese Re-bar export offers rose marginally- Nation’s re-bar export offers witness marginal rise amid gains in domestic market.
market participants are expecting the bides to be on lower side which is around USD 535/MT FoB basis.
Meanwhile prices in the domestic market are heard at RM 3,790-3,830/MT(eastern China) and RMB 3,700 – 3,740/MT (Northern China).
Chinese Iron and Steel Prices Week 16
| Particulars | Currency | Current Prices per MT |
1 W | 1 M |
| Spot Iron Ore Fines Fe 62%, CNF China |
USD | 67 | 64 | 65 |
| Met Coke, 64%, FoB China | USD | 327 | 334 | 360 |
| Premium HCC,CNF China | USD | 196 | 203 | 219.5 |
| Chinese Domestic Billet, ex-works (150*150mm, including 17% VAT) |
RMB | 3,640 | 3,540 | 3,600 |
| Billet 150*150 mm, FoB China |
USD | 520 | 515 | 535 |
| Rebar, FoB China | USD | 550 | 545 | 561 |
| Wire Rod.FoB China | USD | 565 | 575 | 592 |
| Eastern China Domestic HRC Prices ex-Works |
RMB | 4,020-4,040 | 3,920-3,950 | 3,888 |
| HRC, FoB China | USD | 585 | 580 | 595 |
| CRC,FoB China | USD | 610 | 615 | 633 |
| Plate,FoB China | USD | 595-600 | 595 | 600 |
Source-SteelMint Research
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