This week Chinese steel market is attributed as higher steel prices backed by strong demand in domestic market.Major mills like Baosteel and Wuhan steel has also increased the prices for Oct’17 deliveries.Also crude steel output has set the new record at 74.59 MnT in Aug’17.Higher profits margins in domestic market has resulted to rise in export offers of long and flat steel products in global market.However coking coal and iron ore products remained on lower side.
Iron ore prices in China amid fall in futures– Benchmark index in China for Fe 62% fines closed at USD 72.1/MT, CFR China by the weekend. Spot lump premium increased to USD 0.456/MT and pellet premium remained stable at USD 41.5/DMT, CFR China. Iron ore inventory at Chinese major ports fell by 1.15 MnT W-o-W to 131.85 MnT.
Coking Coal Prices corrected marginally amid weaker imports from China- Australian coking coal prices have fallen marginally since the Chinese steelmakers resist buying in the backdrop of higher import offers for China.The latest offer for the Premium HCC moved down by USD 2.5/MT and are assessed at USD 208.75/MT FoB Australia against USD 211/MT,FoB compared with previous week.
Chinese domestic billet prices observe decline – Chinese domestic billet prices fell towards the weekend and closed at RMB 3,720/MT (ex-works). Prices fell amid weakening futures. However no billet export offers were heard from Chinese steel mills.
Sustained Domestic Demand Pushes Flat Steel Export offers in China-Nation’s HRC export offers are continuously moving in upward direction and has regained the growth by USD 20-30/MT over sustained demand in domestic market. Also, higher profit margins in domestic market has made Chinese mills reluctant to lower the offers in the export market.This week HRC export offers are prevailing in the range of USD 575-600/MT, FoB China.CRC export offers are assessed at USD 610-615/MT on FoB basis.
Chinese Re-bar export offers drop marginally– Chinese re-bar export offers drop marginally by USD 5/MT,W-o-W basis and are heard in range of USD 560-575/MT,FoB basis.Major rebar mills in China are offering in range of USD 575-585/MT,FoB basis.
Steel Raw Material & Finished Steel Prices in China
| Particulars | Currency | Current Prices |
1 W | 1 M |
| Spot Iron Ore Fines Fe 62%, CNF China |
USD | 72 | 74 | 74 |
| Iron Ore Concentrate in Hebei Province, Fe 66% (ex works) |
RMB | 730 | 740 | 725 |
| Met Coke, 64%, FoB China | USD | 358 | 345 | 310 |
| Chinese Domestic Billet, ex-works |
RMB | 3,720 | 3,830 | 3,750 |
| Billet 150*150 mm, FoB China |
USD | 540 | 525 | 533 |
| HRC, FoB China | USD | 590 | 570 | 550 |
| CRC, FoB China | USD | 615 | 605 | 600 |
| Rebar, FoB China | USD | 560 | 570 | – |
Prices in USD/MT
Source:SteelMint Research
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