Chinese Steel Market Highlights –Week 19,2018

China’s major steelmaker – Baosteel released flat steel prices for June’18 and kept base prices unchanged. Domestic steel prices recovered towards the week close after witnessing decline in 1st half of the week. Domestic HRC prices increased over rise in futures. And rebar domestic prices increased over hike in billet offers.

Flat steel export offers inched down marginally. Coking coal offers started to rebound over improved demand from Chinese steelmakers. Rebar export ofers moved up slightly .And iron ore prices remain range bound.

According to the recent data released by Chinese customs, China’s finished steel exports recorded increase of 15% on monthly basis to 6.48 MnT in Apr’18 which was 5.65 MnT a month ago. However on yearly basis nation’s finished steel export volumes remain largely stable compared to 6.49 MnT in Apr’17.Meanwhile in first four months of CY18 ( Jan-Apr) nation’s finished steel export volumes stood at 21.63 MnT, down by 21% to 27.22 MnT in similar time frame of previous year.

Chinese spot iron ore prices moved up towards the weekend – China spot iron fines prices increased towards the week close to USD 67.42/MT, CFR China.

Iron ore stocks at Chinese major ports stood at 160.03 MnT, down by 0.25 MnT W-o-W.

Spot pellet premium fell amid less demand for imported pellets and was assessed at USD 42.35/MT, CFR China. Spot lump premium was assessed at USD 0.179/DMT, CFR China.

Coking coal offers rebound over improved demand from Chinese steelmakers– Australian coking coal offers started to bounce back as the Chinese steelmakers resumed their purchase.

China’s total coal production, including both thermal and coking grades,has dropped over the past few months, compelling the Chinese steel makers to rely heavily on seaborne coals.

Also,the price gap between domestically produced met coke in China and imported material has been narrowed. Thus Chinese steelmakers are resuming their met coal purchases from the seaborne hard coking coal from Australia.

Currently,Premium HCC prices was assessed at around USD 187.50/MT FoB Australia up by 8.50/MT. Last week the offers were heard at USD 179/MT FoB basis.

Domestic billet prices in China gained strength towards week close- Domestic billet prices in China fell since beginning of this week to to RMB 3,630/MT (incld 17% VAT) for Q235 billet in Tangshan fell , against last week’s close of RMB 3,710. However by the week close, prices moved up to RMB 3,660/MT towards the week close.

Chinese HRC export offers decline marginally- China’s HRC export offers fell marginally amid fluctuating prices in domestic market. Nation’s HRC export offers reduced by USD 5-10/MT on weekly basis.

Currently Chinese HRC price assessment is in the range of USD 580-605/MT,FoB China.Payment are made on letter of credit basis for 1,000-10,000 MT.Previously Chinese mills were offering HRC export offers in the range of USD 590-605/MT,FoB China.

However prices in the domestic market moved in upward direction towards the end of week.Prices of HRC in the domestic market are gauged at RMB 4,200-4,070/MT up by RMB 20-30/MT D-o-D basis (ex-works) in Eastern China and RMB 4,050-4,070/MT up by RMB 40/MT (Northern China).

However traders in China are offering on lower side which is around HRC at USD 580/MT FoB basis.

Chinese Rebar export offers inched up marginally-Nation’s re-bar export offers inched up marginally by USD 5/MT on rising prices in domestic market. However weak trading activity continues to prevail in domestic market.

Currently,nation’s re-bar export offers are at USD 550/MT on China.However trade deals have been concluded at lower prices which is around USD 545/MT FoB basis.

Major mills are offering HRC export offers to be around USD 570-585/MT FoB basis.

Meanwhile prices in the domestic market are heard at RMB 3,960-4,010/MT, up by RMB 70/MT (Eastern China) and RMB 3,900 – 3,940/MT up by RMB 30/MT(Northern China).

Chinese Iron and Steel Prices Week 19

Source-SteelMint Research