Chinese Steel Market Highlights- Week 28

Chinese flat steel and re-bar export offers have shown the upward momentum this week owing to gains in the domestic market.Coal prices also increased this week on active imports from China.

Chinese spot iron ore prices remain range bound – Benchmark index in China for Fe 62% fines prices remained range bound this week and kept hovering at USD 62-65/MT, CFR China.Iron ore stock at Chinese major ports stood at 139.3 MnT slightly down by 0.7% W-o-W. Lump premium moved up to USD 0.208/DMT, CFR China. Pellet premium declined to USD 30.4/DMT, CFR China.

Coking Coal Price Rises on increased imports from China– Coking Coal prices have started to increase on active buying of imported coal from China.Chinese steelmakers are piling up with coking coal stocks since the Chinese government has mandated that with effect from 1 July’17 only government approved ports will be allowed to receive coal imports and small ports will no longer be allowed to do so as per new policy.The latest offer for the Premium HCC is assessed at around USD 153/MT FoB Australia, higher by USD 6/MT against last week.

Chinese Billet continue to remain unworkable owing to high prices – Chinese billet export offers remain high. This week offers are assessed at USD 440-445/MT FoB Chinese main port, up by USD 5/MT,W-o-W.

China’s flat steel export offers Surged over optimistic domestic market– Chinese HRC export offers gained momentum this week by USD 15/MT amid positive sentiments prevailing in the domestic market.Currently HRC export offers are prevailing in the range of USD 465-475/MT, FoB China. Meanwhile prices of HRC in domestic market are heard in the range of RMB 3,560-3,590/MT (ex-works). Chinese CRC export offers are in range of USD 495/MT, FoB basis.

Chinese Re-bar Export Offers Rise Sharply by USD 25/MT – Chinese re-bar export offers rises sharply by USD 25/MT this week despite bearish sentiments spread in the export market.Prices are heard in the range of USD 470-480/MT, FoB China.Current spot prices are evaluated in East China, Shanghai at RMB 3,600/MT (USD 529) and North China, Beijing at RMB 3,660/MT (USD 538) on weekly basis.